OVL-OIL to buy 20% in Mozambique gas field

The government has approved ONGC Videsh Ltd and its partner Oil India Ltd acquiring a total of 20 per cent stake in a giant offshore gas field in Mozambique for over $5 billion.

OVL and OIL have been permitted by buy Videocon Groups 10 per cent interest in the Rovuma Area-1 for $2.475 billion. Meanwhile,OVL will acquire US energy major Anadarko Petroleums 10 per cent stake in the same block for $2.64 billion.

This acquisition will help us meet our energy needs as gas in the block will be turned into LNG for sale into markets like India, oil minister Veerappa Moily said.