OVL to Buy Anadarko's 10% Stake in Mozambique Field

ONGC Videsh (OVL), the overseas arm of state owned ONGC Ltd, is expected to complete the purchase of Anadarko Corp’s 10 per cent stake in a Mozambique gas field for $ 2.6 billion this week, Press Trust of India has reported.

According to the news agency, the deal will be announced soon.

In June, OVL along with Oil India bought Videocon’s 10 per cent stake in the same field.

Sources said unlike the June deal, OVL will buy Anadarko's stake alone in what will be India's second biggest overseas energy acquisition ever.

Rovuma Area 1 Offshore Block in Mozambique covers approximately 2.6 million acres in the deepwater Rovuma Basin offshore Mozambique and represents the largest gas discovery offshore East Africa with estimated recoverable resources of between 35 and 65 TCF as per operator's estimates. Area 1 has the potential to become one of the world's largest LNG producing hubs with first LNG expected in 2018.