OVL and Oil India to split Videocon stake equally

NEW DELHI: ONGC Videsh (OVL) and Oil India will split equally the 10 per cent stake they acquired in a giant Mozambique gas field from Videocon Group for $2.475 billion. OVL, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), and OIL had jointly bought Videocon Group's 10% interest in the Rovuma Area-1 for $2.475 billion.

This stake was originally envisaged to be split in 60:40 ratio with OVL getting the larger share. But with OVL on its own buying US energy major Anadarko Petroleum's 10 per cent stake in the same block for $2.64 billion, the Videocon stake will be split 50:50, a top official in the consortium said.

“We had decided that in case OVL is successful in buying Anadarko's 10% stake, then the Videocon's shares will be split 50:50 and not 60:40,” the official said. “This was a pre-decided arrangement.” Videocon, he said, was originally seeking over $2.8 billion for the 10% stake in the block.