ONGC Videsh (OVL) completed the acquisition of 10% participating interest (PI) in the Rovuma Area 1 offshore block from Anadarko Moçambique Area 1 Limitada (Anadarko). On the Aug. 24, 2013, OVL signed definitive agreements with Anadarko to acquire this interest.

Acquisition of an additional 10% Interest in Area 1 follows our earlier announcement of a completion of a joint acquisition, with Oil India (OIL), of an indirect 10% interest in Area 1, from Videocon Mauritius Energy Limited. BPRL Ventures Mozambique B.V. (BPRL), another Indian PSU already holds a 10% interest in Area 1.

Area 1 covers approximately 2.6 million acres in the deep-water Rovuma Basin, offshore Mozambique and represents the largest natural gas discoveries in offshore East Africa with estimated recoverable resources of 45 to 70 trillion cubic feet. The partners in Area 1 include Anadarko (operator of the project), ENH (the National Oil Company of Mozambique), Mitsui, BPRL, BREML and PTTEP.

The acquisition marks OVL's entry into this emerging world-class offshore natural gas basin with significant future upside potential. Area 1 has the potential to become one of the world’s largest LNG producing hubs and is strategically located to supply LNG to the growing Indian gas market.

Shares of Oil & Natural Gas Corporation gained Rs 7.6, or 2.68%, to settle at Rs 291.55. The total volume of shares traded was 802,753 at the BSE (Friday).