Oil and Natural Gas Corp in talks to buy Videocon's stake in Mozambique gas field
ONGC Videsh Ltd, the overseas arm of the state explorer,and Oil India Ltd (OIL) are together negotiating for the stake for which Videocon is reportedly seeking at least USD 3 billion, sources privy to the development said.
OVL-OIL combine, however, find Videocon's asking price too high and are in the processing of doing a due diligence.
Sources said ONGC is taking OIL along for acquisition of Videocon's 10 per cent stake in Offshore Area 1 in Rovuma basin field and feels OIL alone will not be able to buy the stake.
Bharat Petroleum Corp Ltd (BPCL) also holds 10 per cent stake in the block, which may hold as much as 70 Trillion cubic feet of gas reserves.
Global energy giants like Royal Dutch Shell, BP Plc, Exxon Mobil, Spain's Repsol and China's Sinopec also have found Videocon's asking price too high. Sources said ONGC is also talking to some other firms who
have found gas reserves in Mozambique.
The gas found in Offshore Area 1 is to be turned intolique fied natural gas (LNG) and shipped to markets like India. The plant in the Cabo Delgado province in northern Mozambique, is scheduled to start operating in 2018 with a capacity of 20 million tonnes of LNG per year.
The capacity will be split evenly between
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