ONGC Videsh to acquire additional 10% stake in Mozambique's Rovuma Area 1 offshore gas block from Anadarko Mozambique
Aug 27, 2013 (MarketLine Financial Deals Tracker via COMTEX) --
ONGC Videsh Limited (OVL), an India-based integrated oil and gas company, has signed definitive agreement with Anadarko Mozambique Area 1 Limitada (Anadarko Mozambique) to acquire a direct 10% participating interest in the Rovuma Area 1 Offshore Block in Mozambique (Area 1) for $2,640 million in cash.
Anadarko Mozambique is a Mozambique-based indirectly wholly-owned subsidiary of Anadarko Petroleum Corporation, a US-based oil and natural gas exploration and production company.
Area 1 is an offshore gas exploration block covers approximately 2.6 million acres in the deep-water Rovuma Basin offshore Mozambique.
Anadarko's partners in Area 1 include Mitsui E&P Mozambique Area 1 Limited (20%), BPRL Ventures Mozambique B.V. (10%), Videocon Mozambique Rovuma 1 Limited (10%) and PTT Exploration & Production Plc (8.5%).
Earlier on June 25, 2013, OVL and Oil India Limited have executed a share sale and purchase agreement to acquire 100% stake in Videocon Mozambique Rovuma 1 Limited, a company that holds a 10% participating interest in Area 1 offshore block in Mozambique, from Videocon Mauritius Energy Limited (VMEL), for a consideration of $2,475 million.
Bank of America Merrill Lynch is acting as financial advisor, Simmons & Simmons LLP as legal advisor, Ernst & Young as tax and accounting advisor, and Robertson (UK) Limited, as technical advisor to OVL for the transaction. Citi is acting as financial advisor to Anadarko Petroleum.
The acquisition is expected to close around the end of 2013.
Deal Value (US$ Million) 2640
Deal Type Acquisition
Sub-Category Asset Purchase
Deal Status Announced: 2013-08-24
Target (Company) Anadarko Mozambique Area I Limitada - Rovuma Offshore Area 1 Block - Mozambique
Acquirer (Company) ONGC Videsh Limited
Vendor (Company) Anadarko Mozambique Area I Limitada
According to OVL, "the acquisition will allow OVL to add high quality international assets to its existing exploration and production portfolio, and also increase its reserve and resource base significantly".
Anadarko expect to use the net proceeds from the divestment to further accelerate the short- and intermediate-term oil and liquids opportunities in the Wattenberg field, Eagleford Shale, Permian and Powder River basins, as well as the Gulf of Mexico and other evolving plays in its portfolio.
% Acquisition 10%
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