Videocon picks up stake in Mozambique oil block

Mumbai: Videocon Industries through its wholly-overseas subsidiary Videocon Energy Resources Ltd has picked up a 10 per cent stake in Area I of Rovuma offshore oil block in Mozambique for $75 million.

It announced that it has signed a participation agreement with a subsidiary of Anadarko Petroleum Corp, US, according to an announcement Videocon made to the stock exchanges.

Mr Venugopal Dhoot, Chairman of Videocon Group said that funding for the stake would be done through internal accruals.

The Rovuma exploratory block has good potential and the company’s share of crude would be sold to Indian public sector refineries, he said.

The company said that Anadarko has also entered into an agreement with Bharat Petroleum Corp Ltd’s subsidiary BPRL Ventures Mozambique B.V. on the same terms and conditions for the same block.

In April, Videocon and BPRL had submitted a joint bid to Anadarko for taking up interest in the block.

Upon closing the agreement, Anadarko will have a 36.8 per cent interest in the block, Empresa Nacional De Hidrocarbonetos EP will have 15 per cent interest, Artumas will have an 8.5 per cent interest, Mitsui will have 20 per cent interest while BPRL and Videocon will have a 10 per cent interest each in the block.