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Oil India Ltd (OIL) is likely to take a decision on acquiring Videocon’s stake in Mozambique’s Rovuma Basin asset shortly.
Official sources said due diligence was being done, and then a presentation would be made before the company’s board. Though sources did not give any timeline, there are indications that a decision can be expected in 10-15 days.
When asked if OIL would be going it alone or with ONGC Videsh Ltd (OVL), as was reported, sources said a formal decision was yet to be taken.
According to reports, the OIL-OVL combine is to make a bid to acquire Videocon’s 10 per cent stake in Mozambique’s Rovuma basin shortly. Videocon plans to raise about $3 billion from the transaction, to pay off debts.
The Indian companies will have to compete with some big names in the hydrocarbon sector, including Shell, BP and Exxon Mobil, for the stake buy.
The due diligence to assess the reserves, financial and commercial details is going on, sources said. The reserves in Area 1 are tipped to be huge.
The US major Anadarko Petroleum, which owns 36.5 per cent stake and is the operator of Area 1, in a statement in December said: “To date, Anadarko and its co-venturers have discovered two major natural gas complexes in the Offshore Area 1 of Mozambique’s Rovuma Basin. The Prosperidade complex is estimated to hold between 17 and 30-plus trillion cubic feet (Tcf) of recoverable natural gas resources in the Offshore Area 1 Block. The separate and distinct Golfinho/Atum complex, which is fully contained within the Offshore Area 1 Block, is estimated to hold 15 to 35 Tcf of recoverable natural gas resources. Evaluation of a third discovery on the block, Tubarão, is going on with an appraisal well being expected to be drilled in early 2013.”
Bharat Petroleum Corporation Ltd’s wholly-owned subsidiary Bharat Petro Resources holds 10 per cent stake in Area-1, while Mitsui has 20 per cent, Cove Energy 8.5 per cent, and Mozambique’s ENH holds 15 per cent.
Anadarko and its partners had announced plans to put up plants to liquefy the gas (LNG) so that it could be shipped.
richa.mishra@thehindu.co.in
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