Oil & Natural Gas Corporation Ltd.

The Cabinet Committee on Economic Affairs (CCEA) on Thursday approved acquisition of 20% by ONGC Videsh (OVL) and Oil India (OIL) in a giant Mozambique gas field, which is estimated to hold as much as 65 Trillion Cubic Feet (TCF) of gas.

However, the acquisition will be done in two parts, firstly OVL and OIL jointly will acquire Videocon's 10% stake for about $2.475 billion and then OVL, solely will acquire Andarko Petroleum's 10% stake for $2.64 billion. Further while, the deal to acquire Videocon's 10% in the field stake is expected to be closed before December 31 2013, acquisition of Anadarko's 10 per cent stake is expected by February, 2014.

Back on June 25, ONGC’s subsidiary- OVL and OIL jointly had signed a definitive agreement for acquiring Videocon's stake in Mozambique gas field that covers about 2.6 million acres in the deep-water Rovuma Basin. Further, this acquisition marks the entry of OVL and OIL into the largest gas discovery in offshore East Africa with estimated recoverable resources of 35 to 65 TCF.