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    Oil India to Raise $900mn for Mozambique Buy

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Summary

Oil India Ltd (OIL) is looking to raise $900 million to finance the purchase of Videocon Mauritius Energy Ltd’s 10% stake in Mozambique’s Rovuma 1 offshore block, financial daily Mint has reported.

by: Shardul

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Asia/Oceania

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Oil India to Raise $900mn for Mozambique Buy

Oil India Ltd (OIL) is looking to raise $900 million to finance the purchase of Videocon Mauritius Energy Ltd’s 10% stake in Mozambique’s Rovuma 1 offshore block, financial daily Mint has reported.

In June, OIL and ONGC Videsh Ltd (OVL) announced they were together acquiring Videocon’s stake for $2.47 billion.

The acquisition is expected to be implemented via a newly incorporated entity, in which OVL and OIL are expected to hold 60% stake and 40% stake respectively. The transaction is expected to close in the fourth quarter of 2013. 

ONGC is yet to firm up the funding plans for its $1.48 billion contribution, Mint said.

The Rovuma Area 1 deepwater block is said to be the largest gas discovery off Africa’s east coast with estimated recoverable reserves of 35 to 65 trillion cu. ft (tcf).

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