India’s largest energy explorer expands into Africa

Oil and Natural Gas Corp (ONGC), India's biggest energy explorer, plans to pay about $2.6 billion (€1.9 bn) to buy a 10 percent stake in a Mozambique gas field from Anadarko Petroleum .

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 said they would pay $2.5 billion to buy a stake in the Rovuma-1 Mozambique natural gas field from Videocon Industries.

ONGC rose 2.6 per cent to close at 276.70 rupees in Mumbai on August 23rd, bringing gains this year to 3.3 per cent. Anadarko shares have advanced 21 per cent in 2013.

Last year, ONGC agreed a deal to buy ConocoPhillips’s 8.4 per cent stake in Kazakhstan’s Kashagan project for $5 billion - its biggest overseas acquisition.

Bloomberg