ONGC to buy stake in Anadarko Mozambique gas block for $2.64 billion

NEW YORK Mon Aug 26, 2013 7:38am IST

A technician opens a pressure gas valve inside the Oil and Natural Gas Corp (ONGC) group gathering station on the outskirts of Ahmedabad March 2, 2012. REUTERS/Amit Dave/Files

A technician opens a pressure gas valve inside the Oil and Natural Gas Corp (ONGC) group gathering station on the outskirts of Ahmedabad March 2, 2012.

Credit: Reuters/Amit Dave/Files

Related Topics

Stocks

   

NEW YORK (Reuters) - Anadarko Petroleum Corp(APC.N) said it agreed to sell a 10 percent stake in a gas field offshore Mozambique to a unit of Oil & Natural Gas Corp(ONGC.NS) for $2.64 billion in cash, as the U.S. oil company looks to focus more on its domestic assets.

The deal for Mozambique's offshore Area 1 is expected to close around the end of this year, Anadarko said.

ONGC faces diminishing supplies from its aging oil and gas fields in India and has been buying interests in overseas assets.

ONGC Videsh, the Indian company's overseas arm, recently paid $2.48 billion for a 10 percent stake in another Mozambique gas field from Videocon Group (VEDI.NS).

Anadarko also said it will remain the operator of Area 1 with a working interest of 26.5 percent in the block, which is located in Mozambique's deepwater Rovuma Basin.

The Rovuma field has the potential to become one of the world's largest liquefied natural gas (LNG) producing hubs by 2018, and is strategically located to supply gas to India at competitive prices.

Recent discoveries have turned the Rovuma offshore field into a major draw for global energy producers and boosted Mozambique's natural gas reserves to around 150 trillion cubic feet, or enough to supply the world's No. 1 LNG importer - Japan - for 35 years. (Reporting by Michael Erman, editing by G Crosse)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Press Event

Press Event

Modi takes tea, but no questions, in first press event as PM.  Full Article 

School Shooting

School Shooting

Two killed, four wounded in Washington state school shooting.  Full Article 

Sundar Pichai Elevated

Sundar Pichai Elevated

Google's Pichai to oversee major products and services.  Full Article 

Need For Reforms

Need For Reforms

Euro zone risks "relapse into recession" without structural reforms - Draghi.  Full Article 

Diwali Sales

Diwali Sales

Gold sales jump about 20 pct for Diwali - trade body  Full Article 

World Bank Rival

World Bank Rival

Three major nations absent as China launches W.Bank rival in Asia  Full Article 

Wal-Mart India

Wal-Mart India

Murali Lanka appointed as Wal-Mart India operations chief  Full Article 

Health Of Lenders

Health Of Lenders

25 European banks set to fail health checks - sources.  Full Article 

India Insight

India Insight

Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw”  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage