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ONGC unit to buy stake in Anadarko Mozambique block for $2.64 bn

NEW YORK: Anadarko Petroleum Corp said it agreed to sell a 10 per cent stake in a gas field offshore Mozambique to a unit of India's Oil & Natural Gas Corp for $2.64 billion in cash, as the US oil company looks to focus more on its domestic assets. 

The deal for Mozambique's offshore Area 1 is expected to close around the end of this year, Anadarko said. 

ONGCBSE -3.44 % faces diminishing supplies from its aging oil and gas fields in India and has been buying interests in overseas assets. 

ONGC Videsh, the Indian company's overseas arm, recently paid $2.48 billion for a 10 per cent stake in another Mozambique gas field from India's 
Videocon Group. 

Anadarko also said it will remain the operator of Area 1 with a working interest of 26.5 per cent in the block, which is located in Mozambique's deepwater Rovuma Basin. 

The Rovuma field has the potential to become one of the world's largest liquefied natural gas (LNG) producing hubs by 2018, and is strategically located to supply gas to India at competitive prices. 

Recent discoveries have turned the Rovuma offshore field into a major draw for global energy producers and boosted Mozambique's natural gas reserves to around 150 trillion cubic feet, or enough to supply the world's No. 1 LNG importer - Japan - for 35 years.