ONGC Videsh Ltd to buy Anadarko's 10% stake in Mozambique field for $2.6 bn

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SummaryIt took Sarraf almost a year to lift sagging morale of employees who were unwilling to take decisions for the fear of facing flak later.

by 2030 when ONGC Group's output would be 130 million (domestic production rising from 52 million tonnes currently to 70 million tonnes).

OVL in September last year completed acquisition of Hess Corp's 2.7 per cent stake in Azerbaijan¿s largest oil field and an associated pipeline for USD 1 billion.

Last November, it announced a USD 5 billion purchase of ConocoPhillips's 8.4 per cent stake in Kazakhstan's Kashagan project, touted as the biggest oil find since the 1960s when it was discovered in 2000.

The bid was, however, blocked by the Kazaksthan government that wants the stake to go to Chinese.

Sources said OVL has also acquired two blocks each in Columbia and Bangladesh and is mulling exercising its pre-emption rights to block China's Sinochem Group from buying 35 per cent interest in Brazilian oilfields for USD 1.54 billion.

OVL holds 15 per cent stake in the block BC-10, known as Parque das Conchas, where Brazilian state-controlled oil firm Petroleo Brasileiro SA or Petrobras is selling its 35 per cent stake to Sinopec.

In June, OVL-OIL had bought Videocon's 10 per cent stake in Rovuma block in 60:40 ratio.

The Rovuma field may hold as much as 65 Tcf of inplace gas reserves, more than 10 times the reserves in Reliance Industries' eastern offshore KG-D6 fields, and has the potential to become one of the world's largest liquefied natural gas (LNG) producing hubs by 2018.

Besides the acquisition price, OVL-OIL will have to pay their share of the field development cost and the LNG plant.

Field development and the LNG unit will cost a total of USD 15 billion dollars and their share will come to USD 1.5 billion.

OVL will have to shell out an additional USD 1.5 billion as its share of the cost after the Anardako acquisition.

The transaction is to close in the last quarter of 2013.

OVL-OIL need approval of the Mozambique and Indian government, regulatory permissions and existing partners in Rovuma-1 area waiving off their pre-emption rights for the deal to go through.

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