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Videocon Industries Acquires Over 12% In Anadarko, Indonesia

Videocon has made a capital outlay of $11.12 M, which will be incurred by the end of 2010.

Videocon Industries Ltd has acquired a 12.5% stake in an Indonesian gas farm Anadarko Indonesia Nunukan Company, a wholly owned subsidiary of Anadarko Petroleum Corporation, USA. For the transaction, Videocon has made a capital outlay of $11.12 million, which will be incurred by the end of 2010, the company informed the exchanges.

With this, Videocon has strengthened its operation in oil and natural gas exploration and production space in Indonesia. The company has executed a farmout agreement with Anadarko in a production sharing contract (PSC) and a related joint operating agreement (JOA) for exploration in Nunukan Block area, which is located at offshore Indonesia.
Videocon has made the transaction through its overseas subsidiary Videocon Indonesia Nunukan Inc. Earlier in September 2008, VB (Brasil) Petroleo Pvt Ltd, a company incorporated by Videocon Industries Ltd and Bharat Petro Resources Ltd, a wholly owned subsidiary of Bharat Petroleum Corporation Ltd, acquired 100% share capital of EnCana Brasil Petroleo Ltd (EBPL), a Brazilian company, for $165 million.
Meanwhile, Anadarko has entered into a similar agreement with BPRL Ventures Indonesia BV. BPRL is an overseas wholly owned subsidiary of Bharat Petro Resources Ltd, an India based wholly owned subsidiary of Bharat Petroleum Corporation Ltd (BPCL). BPRL has acquired another 12.5% participating interest in Anadarko under the PSC and JOA.
After the stake dilution, Anadarko is currently with 35% stake in the company, while Videocon and BPRL hold 12.5% each. The remaining 40% stake is with Medco E&P Nunukan, a leading oil and gas company engaged in exploration and production of gas in Indonesia.
Anadarko has posted a net loss of $39 million in the second quarter ended by June 2009, while it has achieved a 4% sequential volume growth over its first-quarter growth in 2009. It has explored and produced around 2.28 billion barrels of oil in 2008. Anadarko has offices in the US, UK, Algeria, Brazil, China and Indonesia. The company also produces deepwater in the Gulf of Mexico, and has production and exploration facilities in Alaska, Algeria, Brazil, China, Indonesia, Mozambique and West Africa.


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