New Delhi, India — 26 April 2013 – Leading exploration and production company ONGC Videsh Limited “’ a member of Indian group Oil and Natural Gas Corp “’ and Oil India Limited are negotiating with international banks to issue foreign currency bonds to raise US$5 billion to acquire 20% of a gas block in Mozambique.
The two stakes of 10% each are being sold by US group Anadarko Petroleum, the operator of the Area 1 block with a total stake of 36.5%, and India’s Videocon Industries, with a total of 10%.
The oil block in Mozambique is essential for OVL given that recent attempts to buy an oil field in Kazakhstan are likely to fail, as the local government is expected to sell the stake to a Chinese company.
The Indian press also reported that if the two companies had decided to join forces in this deal to buy the 20% stake, Indian groups would own 30% of the gas block, as Bharat Petroleum already owns 10%, and the US group would see its total stake drop to 26.5%.
The Area 1 block, in the Rovuma basin in northern Mozambique, is operated by Anadarko Petroleum and the remaining partners are Japan’s Mitsui & Co., with 20%, India’s Bharat Petroleum Corporation Limited and Videocon, with 10% each, Mozambique’s ENH (15%) and Thailand’s PTT, which owns 8.5%.
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