The Woodlands, Texas, USA — 07 March 2013 – US group Anadarko Petroleum has joined Indian group Videocon Industries and decided to sell a 10% tranche of its stake in the Area 1 oil block in the Rovuma basin of northern Mozambique.
Macauhub News Agency reports that by selling 10% of the block Anadarko will keep a total of 26.5%, while Videocon Industries will no longer have a stake in the block, as its total stake is 10%.
Videocon Industries has confirmed plans to sell the stake and said it had hired investment banks Standard Chartered and Union des Banques Suisses (UBS) to manage the process. It expects to receive its first acquisition proposals by 14 March, according to UK newspaper the Financial Times.
The bidding process is expected to attract the interest of large groups, including Royal Dutch Shell, which last year dropped out of an auction to buy an 8.5% stake in the same block owned by Ireland’s Cove Energy, which ended up being bought by Thai state group PTT Exploration and Production.
The consortium that operates the Area 1 block is led by Anadarko, currently with a 36.5% stake: the other partners in the block are Japan’s Mitsui (20%), BPRL Ventures and Videocon (both from India and with 10% each), Thai state company PTTEP (8.5%) and Mozambique’s Empresa Nacional de Hidrocarbonetos (ENH) with the remaining 15%.
The latest estimates point to the existence of over 130 trillion cubic feet of natural gas in the Rovuma basin, which would be enough to supply a country like Japan for 35 years.
Source: Macauhub News Agency. For more information, click here.