ONGC announces $2.5 bn deal, withdraws hours later

OIL too felt such an announcement was at least a couple of days away and should have been done only when the requisite agreements had been signed.

By Rajeev Jayaswal, ET Bureau | Updated: Jun 10, 2013, 10.11 PM IST

NEW DELHI: State-run Oil & Natural Gas Corp (ONGC) has retracted from its earlier statement that ONGC Videsh and Oil India had signed a definitive agreement with Videocon to buy 10% stake in a Mozambique gas field for $2.47 billion.

“ONGC regrets to announce that the press release titled ‘OVL and OIL sign definitive agreement to acquire interest in the Rovuma Area-1 offshore block in Mozambique’ has been inadvertently issued. The above-referred Release stands withdrawn,” ONGC said in a statement after announcing the deal about two-and-a-half hours ago.

Earlier in the evening it said the state-run energy firms ONGC Videsh Ltd and Oil India Ltd had agreed to buy Videocon’s 10% stake in a Mozambique gas field for $2.47 billion.

India’s biggest state-run explorers would acquire Videocon Mozambique Rovuma 1 Ltd, which holds 10% stake in the Rovuma Area-1 offshore block in Mozambique, ONGC had said in a statement issued around 17.55 hours (IST). ONGC Videsh is the overseas arm of ONGC.

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