India's Videocon Values its Mozambique Gas Asset at $2.26 bn

India’s Videocon Industries Ltd has valued its 10% stake in gas reserves in Mozambique at $2.26 billion.

Mint newspaper reports that the company based its calculation on Cove Energy's recent 8.5% stake sale in the block for $1.92 billion. Videocoan added that the valuation does not exclude “the large gas discoveries which took place during the period when the Cove Energy sale process was on, which might or might not have been (taken) into account by PTT,” which eventually won the bid.

“The total valuation will definitely be more than $2.26 billion and will be out very soon,” Videocon chairman Venugopal N. Dhoot was reported by Mint as saying.

The Mozambique asset is estimated to have 60 trillion cubic feet (tcf) of proven gas resources. Anadarko Petroleum Corp., the block’s lead operator, has said the reserves could rise to as much as 100 tcf. This is nearly 10 times the most optimistic estimate ever given for Reliance Industries Ltd’s D6 block in the Krishna-Godavari (KG) basin, India’s biggest gas discovery, the newspaper report said.