ONGC Videsh, GAIL eye UK's Cove Energy in $1.2 bln deal: Paper

Jan 14, 2012 |

Reuters

mumbai

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ONGC Videsh Ltd, the overseas investment arm of state-run explorer Oil and Natural Gas Corp, and GAIL India are making a joint bid to acquire UK-based Cove Energy Plc, a newspaper reported on Saturday.

The deal is valued at over $1.2 billion, the Times of India said, citing sources briefed on the matter.

Both OVL and GAIL have concluded technical due diligence and are expected to place the financial bid soon, the report said.

Officials at GAIL and ONGC were not immediately available for commCove Energy, with a market value of about $977 million, put itself up for sale earlier in January.

Cove Energy, with a market value of about $977 million, put itself up for sale earlier in January.

The firm has an 8.5-per cent stake in the Rovuma Area 1 offshore block in Mozambique with an estimated 30 trillion cubic feet of gas reserves.

Bharat Petroleum Corp and Videocon Industries Ltd own 10 per cent stake each in the Rovuma block and the right of first refusal, the paper said.

The two firms are not exercising their rights to buy Cove Ennergy's stake in the Mozambique gas block, the report added.

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