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Mozambique oil block fetches $2.5b from Indian firms

Indian companies ONGC Videsh Ltd (OVL) and Oil India Ltd (OIL) have made a joint offer of $2.5 billion for a 10 percent stake owned by India’s Videocon Industries in the Area 1 block of Mozambique’s Rovuma basin, the firms said in a joint statement on Wednesday.The ONGC group, which controls ONGC Videsh Ltd, issued a statement announcing the deal, but later retracted it noting that it would be confirmed later this week.

The statement said that ONGC Videsh, the parent company for international business, had signed an agreement with Videocon Mauritius Energy to acquire the entire stake of Videocon Mozambique Rovuma Area 1 Ltd for $2.475 billion.

Later, OVL announced that negotiations with Videocon Industries had continued and that the agreement signed would have to be approved by the governments of Mozambique and India and the partners involved in the oil block.

The stake will be acquired by a partnership between OVL and OIL, according to a previous statement, in which OVL has a 60 percent share and OIL the remaining 40 percent.

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