VIDEOCON STRIKES GAS IN MOZAMBIQUE

Videocon Industries and its partners Amadarko, Cove Energy and BPRL have discovered gas in Mozambique’s Lagosta well. This is the consortium’s third gas discovery in the region.

The Lagosta discovery, located approximately 16 miles to the south of the earlier Barquentine discovery, is a substantial jump in the group’s natural gas findings, and can be used to set up a a liquefied natural gas (LNG) facility.

BPL and Videocon have a 20 pc stake in the block. They are expected to have a hand in the LNG plant and cater to India’s energy requirements. Anadarko has a 36.5 pc interest in the consortium. The other partners are Mitsui E&P Mozambique Area 1 (20 pc), BPRL Ventures Mozambique BV (10 pc), Videocon Mozambique Rovuma 1 (10 pc) and Cove Energy Mozambique Rovuma Offshore (8.5 pc).

“We made important discoveries in the Rovuma offshore block in Mozambique and our partners are very positive on this. Whatever information we have to communicate will be given along with our partners, I cannot comment on anything further,” Videocon chairman V.N. Dhoot said.

In October, the partners announced a major gas discovery in its fourth well, the Barquentine well. The first was in February 2010 when gas was struck in the Windjammer well.

In August 2010, the company announced that the Ironclad well had hit oil and gas saturated sandstones, the first find of liquid hydrocarbons in deep waters off East Africa.

Videocon Industries owns 10 blocks in Brazil, one in Mozambique, one in Indonesia, one in East Timor and another in Australia as well as Ravva in India. Videocon is now focusing on South America and Africa.

The USD 5-billion Videocon Group said that it was setting up a committee to rejig its businesses. Observers think that it will spin off its oil and gas business into a separate SPV through an IPO or demerger.

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