ONGC Announces Mozambique Gas Deal, Later Withdraws

Oil & Natural Gas Corp (ONGC) has withdrawn its earlier statement which said that its overseas arm, ONGC Videsh, and Oil India had agreed to buy Videocon’s 10% stake in a Mozambique gas field for $2.47 billion. 

"This is to draw your attention to an inadvertent and erroneous release of a draft press release in connection with the subject "Potential agreement to acquire an interest in Mozambique", which has also been withdrawn,” ONGC said in a statement.

ONGC was forced to withdraw the press release as some of the smaller commercial terms were yet to be finalised and signed upon, Economic Times reported. The negotiations between the OVL and OIL, Videocon, and other members of the consortium, which even includes the Mozambique government, are expected to conclude in the next 24-48 hours, the financial daily said. 

Analysts expect the ONGC faux pas to impact the timeline of the deal closure, Economic Times said. 

Anadarko and Videocon had each put on sale their respective 10 percent stakes in the Mozambique field earlier this year.