Oil
India Limited (OIL) signs definitive agreements to acquire an interest in the
Giant Gas Field in Rovuma Area 1 Offshore Block in Mozambique
New Delhi, 25th June’13, – Oil
India Limited (“OIL”), along with ONGC Videsh Limited (“OVL”), has signed
definitive agreements in Singapore on 25th
June 2013 with Videocon Mauritius Energy Limited to acquire 100% of shares in
Videocon Mozambique Rovuma 1 Limited, the company holding a 10% participating
interest in the Rovuma Area 1 Offshore Block in Mozambique (“Area 1”), for US$
2.475 Bn. The acquisition is expected to be implemented via a newly
incorporated special purpose vehicle jointly owned by OIL and OVL. The
acquisition is subject to the approvals of the Governments of Mozambique and
India, relevant regulatory approvals, pre-emption rights and other customary
conditions. The transaction is expected to close in the fourth quarter of 2013.
Area 1 covers approximately 2.6 million acres in
the deepwater Rovuma Basin offshore Mozambique and represents the largest gas
discovery offshore East Africa with estimated recoverable resources of between
35 and 65 TCF as per operator’s estimates. Partners in Area 1 include Anadarko,
operator of the project, ENH, Mitsui, BPRL and PTTEP. Area 1 has the potential
to become one of the world’s largest LNG producing hubs with first LNG expected
in 2018.
The Area 1 LNG project is strategically located to
competitively supply LNG to India, and OIL's and OVL's participation in the
project will facilitate access to the growing Indian gas market which will
supplement the country’s energy security endeavour. OIL and OVL will also
devote significant financial and technical resources to the development of the
project. This investment is expected to further enhance the strong business and
cultural links between Mozambique and India.
This investment provides an early entry for OIL
into one of the world’s largest natural gas assets. It will significantly
enhance OIL’s Reserves base improving the longer term growth prospects of the
Company. OIL's Chairman & Managing Director, Mr. S. K. Srivastava
said, "This acquisition is in line with our Strategic 2020-21 Plan which
has a strong focus on inorganic growth across the energy value chain. It will
also provide us with firsthand experience of setting up and operating a deep
water natural gas field and LNG plant, while further helping in addressing the
growing energy requirements of our country. This is a high quality world class
asset with one of the largest discovered resource base, which combined with its
locational advantage makes this is a highly attractive investment proposition
for us.” Mr. T. K. Ananth Kumar (Director - Finance) and Mr. N. K.
Bharali (Director - HR&BD) led the Oil India team in the successful
execution of this important transaction.
Morgan Stanley is acting as
the exclusive financial adviser, Halliburton as Technical consultants, Ernst
& Young as tax and accounting adviser, Simmons & Simmons as legal
adviser to OIL for this transaction.
About OIL
Incorporated in 1959, Oil India Limited (BSE: 533106, NSE: OIL) is the second largest national oil and gas company in India as measured by total proved plus probable oil and natural gas reserves and production. It is engaged in the business of exploration for oil and gas, production of crude oil, natural gas and LPG and transportation of crude oil, natural gas and petroleum products. The company has over 150,000 sq km of Petroleum Exploration License (PEL)/ Mining Lease (ML) areas for its exploration and production activities. OIL has 65 domestic E&P blocks and an International presence spanning USA, Venezuela, Gabon, Egypt, Nigeria, Libya and Yemen among other countries. The company had total income of INR 9,948 Cr (US$1.83 Bn) and PAT of INR 3,589 Cr (US$ 0.66 Bn) in FY13 and produced 6.34 MMTOE of Oil and Gas in the corresponding period. OIL has total 2P reserves of 916 MMBOE in India with a reserve replacement ratio of over 164% for domestic assets in FY13. Market capitalisation of the Company was INR 33,417 Cr (US$ 5.59 Bn) as of 24th June 2013.
Note: Turnover and
profit data for OIL presented in US$ for illustrative purposes only and
converted from Indian Rupee at the exchange rate of INR 54.45 for US$1 (average
RBI reference rate for 2012-13). Market capitalisation of OIL as on 24 June
2013 converted at INR 59.73 for US$1 (RBI reference rate of 24 June 2013).
Media Contacts:
Mansi Gupta
Adfactors PR
+91 9999975490
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