anadarko petroleum corp (APC) Snapshot

Anadarko Petroleum Corporation Presents at 4th Eastern African Oil, Gas & Energy Conference, Jun-18-2013 . Venue: InterContinental Hotel, Nairobi, Kenya. Speakers: Tom Fletcher, Exploration Manager, East Africa.

Oil and Natural Gas Corp. Ltd. (BSE:500312) (ONGC) can go alone for the $5 billion-$6 billion acquisition of a 20% stake in the Rovuma basin gas block in Mozambique and it was not in talks with any global major to share the cost of acquisition as funds were not a constraint. Funding the Mozambique acquisition is not a concern for ONGC that is currently engaged in talks with both Videocon Industries Ltd. (BSE:511389); and Anadarko Petroleum Corporation (NYSE:APC) to buy out their respective 10% stake in the block, Sudhir Vasudeva, Chairman and Managing Director of ONGC, said. On whether ONGC will bid for the stake jointly with its prospective partner Shell India Markets Private Limited, Vasudeva said, "There is no such plan and besides we don't need any foreign player to join us for acquiring this 20% stake... We can do it all by ourselves, and Oil India was already there with it."

Oil and Natural Gas Corp. Ltd. (BSE:500312) (ONGC) and Royal Dutch Shell plc (LSE:RDSA) will equally split a 20% stake acquisition in Rovuma basin gas block in Mozambique, after the sellers decided to court individual buyers due to difference in priorities. The stake on offer is valued between $5-6 billion. Videocon Industries Ltd. (BSE:511389) is selling 10% shares, wants to maximize the value. Anadarko Petroleum Corporation (NYSE:APC) is offloading 10% stake but wants a pedigree global partner with better track record and execution skills. ONGC is the front-runner to pick up the Videocon stake, while Royal Dutch Shell might end up buying Anadarko shares. The Videocon stake sale to ONGC may be announced in June 2013. Anadarko sale to Shell is likely to take more time. Videocon and Anadarko, which were planning to jointly sell their 10% each, have now asked the bankers to clinch transactions separately. "We are in talks with Videocon for its 10% stake. If Anadarko is willing to sell its 10% stake to us, we would buy it as well," ONGC chairman Sudhir Vasudeva said. According to Times of India, Videocon Industries Chairman Venugopal Dhoot refused to comment citing confidentiality clause signed with the bankers. ONGC has started final negotiations to buy Videocon stake. "The Indian government is backing ONGC and wants Videocon to sell its 10% stake to ONGC. The state-owned giant needs to match the highest bidder to get Videocon's 10% stake in the block," said a source. Anadarko and Videocon Industries had put 10% stake each in the block up for sale and hired Standard Chartered and UBS as advisors in March 2013 and planned to sell the stake jointly and floated term sheet together.