Videocon May Sell its 10% Stake in Mozambique Gas Field

Videocon is mulling selling its 10% stake in Mozambique’s Rovuma basin, scrapping earlier plans to transport gas from the African nation to India, Economic Times reported citing company sources.

The company is seeking $3 billion from potential buyers, including Shell. “I am not denying these developments, but I cannot share any concrete details as it is too early,” Venugopal Dhoot, chairman and MD, said.

Bloomberg in a separate report said selling its 10% share in the block in Mozambique, home to the world’s biggest gas discovery in a decade, will help the group pay Rs. 20,000 crore ($3.6 billion) of debt and reclaim mobile-phone licences in India that were cancelled by the Supreme Court earlier this year.

Videocon agreed to pay $75 million for the stake in Mozambique’s Rovuma-1 area in 2008 to Anadarko Petroleum Corp., which leads the group exploring the reserve. Bharat Petroleum Corp., the country’s second-largest state refiner, and Cove Energy Plc, are among the other investors in the field.