Videocon Industries and US energy major Anadarko Petroleum Corp have put on auction their 20 per cent stake in a giant Mozambique gas field in which state—run ONGC, OIL, GAIL and Indian Oil Corp (IOC) may be interested.
Both the companies are running almost common auction process but the sale transaction will be separate, sources privy to the development said.
First round of bids are due on March 14 after an information memorandum on the sale was sent to potential bidders in early February.
Anadarko is the operator with 36.5 per cent stake in Mozambique’s offshore Area 1, which may hold as much as 70 Trillion cubic feet of gas resources. Videocon and a unit of Bharat Petroleum Corp Ltd (BPCL) hold 10 per cent stake each in the block where Japan’s Mitsui & Co Ltd is the second— biggest stakeholder with a 20 per cent interest.
Thai state oil company PTT Exploration and Production PCL has an 8.5 per cent interest and Mozambique’s state—owned ENH 15 per cent.
Sources said while Videocon has put on offer its entire stake to cut its debt, Anadarko is offering a part of its shareholding.
ONGC Videsh Ltd, the overseas arm of the state explorer, and Oil India Ltd (OIL) are together negotiating for the stake and it is not clear if they will acquire all of 20 per cent or 10 per cent from either of the parties.
State gas utility GAIL India, too, is interested, so is IOC.
Sources said it is unclear if the four PSUs can come together for the acquisition that may cost anything between $4 billion and $5 billion for the 20 per cent stake.
The gas found in Offshore Area 1 is to be turned into liquefied natural gas (LNG) and shipped to markets like India.
The plant in the Cabo Delgado province in northern Mozambique is scheduled to start operating in 2018 with a capacity of 20 million tonnes of LNG per year.
The capacity will be split evenly between operators of Offshore Area—1 and Italian giant Eni, which is developing gas found in the neighbouring Offshore Area 4.
Two major natural gas discoveries have so far been made in Offshore Area 1 of Mozambique’s Rovuma Basin. The Prosperidade complex is estimated to hold between 17 and 30—plus Tcf of recoverable natural gas while separate and distinct Golfinho/Atum complex is estimated to hold 15—35 Tcf of recoverable natural gas resources.