ONGC, Oil India buy into Mozambique Rovuma gas play

Offshore staff

NEW DELHI, India – ONGC Videsh (OVL) and Oil India (OIL) have agreed to acquire 100% of Videocon Mozambique Rovuma 1 Ltd and its 10% interest in Rovuma Area 1 Offshore Block offshore Mozambique for $2.475 billion.

OVL and OIL are expected to hold 60% stake and 40% stake, respectively. The acquisition is subject to the approvals ofMozambique and India, relevant regulatory approvals, pre-emption rights, and other customary conditions. The transaction is expected to close in 4Q 2013.

Area 1 covers approximately 2.6 million acres in the deepwater Rovuma basin and holds estimated recoverable reserves of 35 to 65 tcf of natural gas.

The partners in Area 1 includeAnadarko, operator of the project, ENH, Mitsui, BPCL, and PTTEP.

6/26/2013