ONGC Videsh Eyes Additional Stake in Mozambique Field

ONGC Videsh Ltd is looking to buy additional stake in gas-rich Rovuma basin in Mozambique and has bid for 10% stake in the basin held by Anadarko Petroleum, the block's operator.

Earlier this year Oil India and ONGC Videsh Ltd (OVL) announced they were together acquiring Videocon’s stake for $2.47 billion.

"We have put in a bid for Anadarko's 10% stake. This time we are going alone, we do not have Oil India with us," the Economic Times quoted DK Sarraf, the chairman and managing director of ONGC Videsh Ltd (OVL), as saying.

Sarraf did not give more details, but a person close to the development told Economic Times that Anadarko is playing hard ball and demanding a higher valuation of close to $2.6 billion.

"There are some tax implications that they want to be reimbursed for, so they are demanding higher valuations," the person, who is a senior executive of a public sector oil firm, told Economic Times.

If both deals go through, they will together account for OVL's largest global investment till now.

India is likely to receive about six million tonnes of gas per annum once production commences in this basin in Mozambique, Economic Times said.