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OVL, OIL complete buying Videocon stake in Mozambique

State-run hydrocarbon explorer ONGC's foreign arm, ONGC Videsh Ltd (OVL), and Oil India (OIL) have completed the purchase of Videocon Group's 10 percent stake in a Mozambique gas field for USD 2.475 billion, OIL said Wednesday.

OIL in a statement said the buyout of Videocon stake in the Rovuma 1 gas field from Videocon Mauritius Energy Limited was "in pursuant to our signing of definitive agreements to acquire this interest."

The acquisition marks state-run OIL's entry into the global liquefied natural gas (LNG) industry.

OVL has in addition bought US energy major Anadarko Petroleum's 10 percent stake in the Rovuma Area 1 offshore block for USD 2.64 billion.

The 10 percent stake will be split in a 60:40 ratio between OVL and OIL.

Area 1 covers 2.6 million acres in the deepwater Rovuma Basin and represents the largest gas discovery in offshore East Africa, with recoverable reserves estimated at 35 to 65 trillion cubic feet.

The partners in Area 1 include Anadarko, the operator of the project, ENH (the national oil company of Mozambique), Mitsui, BPRL (a unit of Bharat Petroleum Corp) and Thailand's PTT Exploration and Production.

"The Area 1 LNG project is strategically located to competitively supply LNG to India," OIL added.

Stake-seller Videocon will explore other investment opportunities in Mozambique, company director Kuldeep Drabu said in a statement.