ONGC, Oil India Bid for Mozambique Gas Field Stake -Source

By Saurabh Chaturvedi

India'sOil & Natural Gas Corp. (500312.BY) has made a joint bid with Oil India Ltd. (533106.BY) to buy a 20% stake in a Mozambique oil and gas field, a person with direct knowledge of the matter said Friday, underscoring the South Asian nation's interest in buying hydrocarbon assets overseas.

ONGC Videsh Ltd.--a wholly-owned unit of state-run oil and gas explorer ONGC--and Oil India have bid for shares being sold by Anadarko Petroleum Corp. (APC) and India'sVideocon Industries Ltd. (511389.BY) totalling 20%, according to the person, who didn't want to be named.

Anadarko, the project developer at the Mozambique block, is planning to bring down its stake in block-1 of the Rovuma offshore field by 10% to 26.5% to raise additional funds for the project, the person said. Videocon plans to sell its 10% stake, the person added.

The source declined to give financial details of the bid and didn't say when the bids will be considered.

ONGC Videsh managing director D K Sarraf declined to comment, while Oil India Chairman S.K. Srivastava and Videocon Chairman Venugopal Dhoot couldn't be immediately contacted for comment.

India imports over 75% of its energy needs. Indian companies have been scouting for oil and gas reserves overseas amid a shortfall in output from ageing domestic assets.

Write to Saurabh Chaturvedi at saurabh.chaturvedi@dowjones.com

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