Videocon, Bharat Petroleum buy 10 per cent each in Mozambique oil block

Mumbai: Diversified group Videocon Industries and Bharat Petroleum have taken a 10 per cent stake each in an offshore oil exploration block in Mozambique.

Videocon Energy Ventures Ltd, the overseas arm of Videocon Industries, and Bharat PetroResources Ltd, a unit of BPCL, signed separate agreements with Anadarko Mozambique Ltd for taking 10 per cent participating interest each in Offshore Area-1 of the Rovuma block, the companies said.

The acquisition of the 10 per cent stake would cost Videocon and Bharat Petroleum an estimated $75 million each, the release said.

Anadarko will have a 36.8 per cent interest in the block, Empressa Nacional de Hidrocarbonetos EP will have 15 per cent interest, Artumas will have an 8.5 per cent interest, UK-based Mitsui E&P will have 20 per cent interest while BPRL and Videocon will have a 10 per cent interest each in the block.

The closing of the transaction under the agreement is subject to normal conditions precedent in these kind of transactions, including consent and waiver of first right of refusal by existing participating parties and subject to regulatory approvals, Videocon said in a statement.