Billionaire Venugopal Dhoot is auctioning his 10% stake in the Rovuma, Mozambique gas field that could fetch over $2 billion (Rs10,800 crore) to Videocon Industries – after investing $75 (over `400 crore) million in 2008.
Billionaire Venugopal Dhoot is auctioning his 10% stake in the Rovuma, Mozambique gas field that could fetch over $2 billion (Rs10,800 crore) to Videocon Industries – after investing $75 (over `400 crore) million in 2008.
The Rovuma offshore field is drawing major interest after recent discoveries boosted Mozambique’s gas reserves to around 150 trillion cubic feet, enough to supply world number one importer Japan for 35 years.
Dhoot is auctioning his stake along with US oil and gas explorer Anadarko Petroleum Corp, which is also selling 10%. He is leading the process and has hired two investment banks to handle the sale, the sources added.
First round bids are due on March 14 after an information memorandum on the sale was sent to potential bidders in early February, one of the sources said.
PetroChina, India’s Oil & Natural Gas Corp and Exxon Mobil Corp are among suitors expected to submit indicative proposals, sources with direct knowledge of the matter said, adding, Royal Dutch Shell PLC, which last year missed out on a stake in the same field when it lost a takeover battle for Cove Energy Plc, is also interested.
Shell, ONGC and Exxon declined to comment. PetroChina officials were not available for comment.
Last year, Thailand state oil company PTT Energy trumped Shell to take control of Cove and its 8.5% stake in the Rovuma 1 field for $1.9 billion. On a similar valuation, the 20% stake on offer could fetch about $4.5 billion, sources said.
Anadarko is the operator of Mozambique’s offshore Area 1 with a 36.5%, while Japan’s Mitsui & Co Ltd is the second-biggest holder in the block with a 20% stake.
State-owned refiner Bharat Petroleum Corp Ltd and a unit of Dhoot’s Videocon Industries own 10% each, while PTT has an 8.5% interest and Mozambique’s state-owned ENH 15%.
Videocon is seeking about $2.5-$3 billion for its 10% stake, though sources warned buyers are unlikely to pay a huge premium over what PTT paid.
“PTT paid what was a good price, but to get to a $3 billion price tag is difficult,” a person familiar with the process said.
A spokesperson for Anadarko did not immediately respond to a request for comment on Monday, while Dhoot declined to comment.
Dhoot ranks 38th in Forbes’ India rich list with a net worth of $1.5 billion.
The Indian company is expected to use some of sale proceeds to pare debt of more than $5.5 billion. Reuters
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