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Monday, 3 March 2014

AFRICA ATTRACTING INDIAN OIL COMPANIES

ONGC Videsh Ltd (OVL) and Oil India Ltd (OIL) have jointly bought for $2.475 billion the Videocon’s 10 percent stake in the Rovuma Area 1. OVL and OIL have together completed the attainment of Videocon Group’s 10 percent stake in a gigantic Mozambique gas field along with OVL additionally buying US energy major Anadarko Petroleum’s 10 percent stake in the same block for $ 2.64 billion. According to sources, ONGC Videsh Ltd have elevated around $1.5 billion in one-year link loans from foreign lenders, while OIL engaged $900 million to stock their corresponding share of payments to Videocon. Also, talks are going on that OVL would increase another $2.6 billion for the Anadarko payments. OVL stated, “OVL and OIL have completed the acquisition of 10 percent interest in the Rovuma Area 1 offshore block, Mozambique, by acquiring 100 percent shares of Videocon Mozambique Rovuma 1 Ltd, the company holding the 10 percent interest in the Area 1, from Videocon Mauritius Energy Ltd.”

Furthermore, the bought up stakes will be split in a 60:40 ratio between OVL and OIL. The agreement by two businesses was signed with Videocon Mauritius energy thus, procuring the stake in the gas field. OVL added, “This marks OVL’s entry into this emerging world-class offshore gas basin with significant future upside potential.

Area 1 has the potential to become one of the world’s biggest LNG producing hubs and is strategically located to supply LNG to the growing Indian gas market.” Also, Videocon’s Director Kuldeep Drabu quoted on the agreement, “Videocon shall also continue to explore more opportunities in energy sector elsewhere… pursuant to its corporate objective and strategy to remain actively invested in E&P activities worldwide.”

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