The proposal by ONGC Videsh (OVL) and Oil India (OIL) to pick up Videocon Mauritius EnergyÂ’s 10 percent stake in MozambiqueÂ’s Rovuma 1 block is awaiting the approval of the union cabinet.
The petroleum ministry moved a note before the cabinet committee on economic affairs for approval. The acquisition would be completed soon, oil minister M Veerappa Moily said.
By the fourth quarter of 2013, OVL and OIL may complete the Mozambique transaction, which would enable India meet some of its energy demand.
It may be noted that the Rovuma 1 block is the largest gas find off AfricaÂ’s east coast, for $2.47 billion. The 2.6 million acre deepwater field is estimated to have recoverable gas reserves of 35-65 trillion cu. ft (tcf).
OVL will have a 60 percent stake and OIL 40 percent in the entity that will acquire the 10 percent stake in the offshore block. US-based Anadarko Petroleum Corp. is the project operator.