Regions

India's biggest state run explorers include Oil & Natural Gas Corp (ONGC) and Oil India Ltd. Both companies said that they will pay US$2.5 billion to purchase a stake in a Mozambique natural gas field from Videocon Industries Ltd.

The two Indian firms will acquire Videocon Mozambique Rovuma 1 Ltd. The latter owns 10% of the Rovuma-1 field in the waters of the African nation. Oil India announced today during a stock exchange filing that the transaction is expected to close by the last quarter of this year. It was first stated by ONGC last June 10 however withdrew the same day saying the announcement was premature.

Since September, ONGC acquired US$8.5 billion of oil and gas assets outside India. By 2030, the company seeks to raise its overseas production of more than six folds. It is also seeking to reduce the dependence on oil and gas imports in the south Asian nations.

The two state run companies will form a venture for the acquisition subjected to the approval of both Indian and Mozambique governments as well as getting cleared from its existing partners in the Rovuma-1 area.