OVL-OIL to buy Videocon stake in Mozambique field for $2.5 bn

OVL-OIL to buy Videocon stake in Mozambique field for $2.5 bn New Delhi: In the third acquisition in 10 months, state-owned Oil and Natural Gas Corp (ONGC) and Oil India Ltd (OIL) will buy Videocon Industries' 10 percent stake in a giant Mozambique gas field for about USD 2.5 billion.

The acquisition of the stake in Mozambique's offshore Area 1, which may hold as much as 65 Trillion cubic feet (Tcf) of gas resources, will be done through a joint venture of OVL and OIL, the two firms announced.

OVL, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC) will hold 60 percent stake in the joint venture while OIL will have the remaining 40 percent.

OVL and OIL have signed a definitive agreement with Videocon Mauritius Energy Ltd to acquire 100 percent of (its) shares in Videocon Mozambique Rovuma 1 Ltd for USD 2475 million, the statements said.

PTI