NEW DELHI, June 25: OVL, an overseas arm of ONGC, and Oil India Ltd (OIL) today signed definitive agreements in Singapore with Videocon Mauritius Energy Ltd to acquire 100 per cent of shares in Videocon Mozambique Rovuma 1 Ltd, the company holding a 10 per cent participating interest in the Rovuma Area 1 Offshore Block in Mozambique (Area 1) for 2,475 million dollars.
The acquisition is expected to be implemented via a newly incorporated entity, in which OVL and OIL are expected to hold 60 per cent stake and 40 per cent, stake respectively.
“Considering the growing importance of natural gas in the primary energy basket, this acquisition is a significant step by OVL/ONGC group towards the energy security of our country,” said OVL chairman Sudhir Vasudeva said.
The acquisition is subject to the approvals of the Governments of Mozambique and India, relevant regulatory approvals, pre-emption rights and other customary conditions.
The transaction is expected to close in the fourth quarter of 2013, according to a release issued here.
Bank of America Merrill Lynch is acting as the exclusive financial adviser, Simmons & Simmons as legal adviser, Ernst & Young as tax and accounting adviser and Robertson (UK) Ltd – a CGG company, as technical adviser to OVL.
Area 1 covers about 2.6 million acres in the deep-water Rovuma Basin offshore Mozambique and represents the largest gas discovery in offshore East Africa with estimated recoverable reserves of 35 to 65 trillion cubic feet.
(UNI)
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