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Construction : Exclusive Report | October 2013 | Source : Construction Update

Nod to OVL, OIL to buy 20% in Mozambique oil block

The Cabinet Committee on Economic Affairs (CCEA) has approved the proposal of the Ministry of Petroleum and Natural Gas to authorise ONGC Videsh (OVL) and Oil India (OIL) to acquire 20 per cent Participating Interest (PI) in Rovuma Area 1 Offshore Block in Mozambique (Area 1). The transaction comprises acquisition of 100 per cent of shares in Videocon Mozambique Rovuma 1 Limited, the company holding a 10 percent PI in Area 1, from Videocon Mauritius Energy Limited, a subsidiary of Videocon Industries Limited, jointly by OVL and OIL for US$ 2,475 million. Closing is expected before 31st December 2013. Another 10 per cent PI in Area 1 from Anadarko Mozambique Area 1 Limitada, a subsidiary of Anadarko Petroleum Corporation solely by OVL for $ 2,640 million, with closing in February, 2014. Area 1 covers approximately 2.6 million acres in the deep-water Rovuma Basin and the acquisition would mark the entry of OVL and OIL into the largest gas discovery in offshore East Africa with estimated recoverable resources of 35 to 65 trillion cubic feet (tcf).
 
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