Regions

ONGC Videsh Ltd (OVL) and Oil India Ltd (OIL) said today that they have completed the acquisition of a 10% stake in a gas field in Mozambique. The said stake was previously held by Videocon Group. The transaction is valued at $2.475 billion, according to Firstpost.

OVL is the overseas arm of state-owned exploration firm Oil & Natural Gas Corp (ONGC). The former inked an agreement with OIL in June 2013 to purchase Videocon's interest in the Rovuma Area 1 in Mozambique. The two companies released separate statements saying payments to close the transaction were made yesterday. the report detailed.

The newly purchased 10% stake will be divided in a 60:40 ratio between the two buyers, the report added.

OVL said in a statement: "This marks OVL's entry into this emerging world-class offshore gas basin with significant future upside potential. Area 1 has the potential to become one of the world's largest LNG producing hubs and is strategically located to supply LNG to the growing Indian gas market."