Bombay, India — 19 August 2013 – ONGC Videsh, the foreign business unit of Indian oil group Oil and Natural Gas Corporation (ONGC), plans to buy another 10% stake in the Area 1 oil block, in Mozambique, which US group Anadarko petroleum plans to sell.

Macauhub News Agency quotes Indian newspaper the Economic Times as reporting that chairman and chief executive DK Sarraf said: “We have made a proposal to buy the 10% owned by Anadarko Petroleum, and this time we are competing on our own, without the involvement of Oil India Limited.”

ONGC Videsh, in partnership with Oil India Limited, recently acquired a 10% stake in the same block of the Rovuma basin, owned by a subsidiary of private Indian group Videocon Industries, for US$2.48 billion.

Sources contacted by the newspaper said that the US group was asking for an amount of US$2.6 billion.

“There are tax implications and thus the officials from the US group plan to make up the taxes they will have to pay to the Mozambican state by asking for a higher price for the stake they have put up for sale,” said the source.

The Area 1 Block is operated by US group Anadarko Petroleum, with 36.5%, 10% of which is up for sale, and the remaining partners are Japan’s Mitsui & Co. (20%), Indian group ONGC Videsh and Oil India Limited, and Indian company Bharat Petroleum, with 10% each, Thai state group PTT with 8.5% and Mozambican state company Empresa Nacional de Hidrocarbonetos with 15%

Source: Macauhub News Agency. For more information, click here.