The Cabinet Committee on Economic Affairs (CCEA) on Thursday gave its nod to $5.1-billion worth acquisitions of ONGC Videsh Ltd (OVL) in Mozambique.
Two deals
This comprises two deals — buying 10 per cent stake from US-based Anadarko Corp’s in a Mozambique gas field for $2.6 billion and acquisition of 10 per cent stake from Videocon Industries for about $2.4 billion.
On August 24, OVL signed definitive agreements with Anadarko Moçambique Area 1 Limitada to acquire a direct 10 per cent participating interest in the Rovuma Area 1 Offshore Block in Mozambique. This marked OVL’s fourth acquisition this year.
This acquisition of an additional 10 per cent interest follows the earlier announcement of a joint acquisition with Oil India of an indirect 10 per cent interest in block from Videocon Mauritius Energy Ltd. BPRL Ventures Mozambique B.V., another Indian PSU, already holds a 10 per cent interest in Area 1.
OVL plans to borrow $4 billion to fund its back-to-back acquisitions of stakes in a giant Mozambique gas field.