ONGC Said to Plan $2.6 Billion Purchase of Anadarko Gas Stake
Oil & Natural Gas Corp. (ONGC), India’s biggest energy explorer, plans to pay about $2.6 billion to buy Anadarko Petroleum Corp. (APC)’s stake in a Mozambique gas field, two people with direct knowledge of the matter said.
ONGC may announce the purchase of Anadarko’s 10 percent holding in the offshore block as soon as today, the people said, asking not to be identified before a formal announcement.
The New Delhi-based company plans to spend 11 trillion rupees ($172 billion) by 2030 to add reserves in India and overseas and reverse a decline in output from aging fields at home. In June, ONGC and Oil India Ltd. (OINL) said they would pay $2.5 billion to buy a stake in the Rovuma-1 Mozambique natural gas field from Videocon Industries Ltd.
ONGC rose 2.6 percent to close at 276.70 rupees in Mumbai on Aug. 23, bringing gains this year to 3.3 percent. Anadarko shares have advanced 21 percent in 2013.
ONGC Chairman Sudhir Vasudeva declined to comment. A call made to Anadarko spokesman John Christiansen’s mobile phone outside of regular business hours went unanswered.
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