NEW DELHI, June 26 � In yet another major acquisition, Oil India Limited (OIL), and ONGC Videsh Limited (OVL), have finalised a deal with Videocon Mauritius Energy Limited to acquire 100 per cent shares in Videocon Mozambique Rovuma 1 Limited. A definitive agreement was signed in Singapore yesterday.
Videocon Mauritius Energy Limited holds a 10 per cent participating interest in the Rovuma Area 1 Offshore Block in Mozambique (Area 1), for USD 2.475 Billion. The acquisition is targeted to be implemented via a newly incorporated special purpose vehicle jointly owned by OIL and OVL. The transaction is expected to close in the fourth quarter of 2013, Chairman and Managing Director of OIL, Sunil Kumar Srivastava announced at a press conference here today.
Giving out the details of the acquisition, Director (Human Resources and Business Development) Nripendra Kumar Bharali said Area 1 covers approximately 2.6 million acres in the deepwater Rovuma Basin offshore Mozambique and represents the largest gas discovery offshore East Africa with estimated recoverable resources of between 35 and 65 TCF as per operator�s estimates. Partners in Area 1 include Anadarko, operator of the project, ENH, Mitsui, BPRL and PTTEP. Area 1 has the potential to become one of the world�s largest LNG producing hubs with first LNG expected in 2018, he said.
The OIL officials claimed that the Area 1 LNG project is strategically located to competitively supply LNG to India, and OIL�s and OVL�s participation in the project will facilitate access to the growing Indian gas market, which will supplement the country�s energy security endeavour.
This investment provides an early entry for OIL into one of the world�s largest natural gas assets, the officials said.
