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OVL-OIL to buy Videocon stake in Mozambique gas field for $2.5 bn

OVL, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC) will hold 60 per cent stake in the joint venture while OIL will have the remaining 40 per cent.

BT Online Bureau | July 8, 2013 | Updated 09:46 IST

ONGC Videsh Ltd (OVL), the overseas arm of state-owned Oil and Natural Gas Corp (ONGC) and Oil India Ltd (OIL) will buy Videocon Industries' 10 per cent stake in a giant Mozambique gas field for about $2.5 billion.

The acquisition of the stake in Mozambique's offshore Area 1, which may hold as much as 65 Trillion cubic feet (Tcf) of gas resources, will be done through a joint venture of OVL and OIL, the two firms announced.

OVL, will hold 60 per cent stake in the joint venture while OIL will have the remaining 40 per cent.

OVL and OIL have signed a definitive agreement with Videocon Mauritius Energy Ltd to acquire its shares in Videocon Mozambique Rovuma 1 Ltd for $2475 million, the statements said.

With PTI inputs


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