Videocon to buy 12.5% stake in Anadarko's Indonesian block

Videocon Industries today said it will acquire a 12.5 per cent interest in a Production Sharing Contract with the US-based Anadarko Petroleum for an Indonesian offshore oil and gas block at $11.1 million.     

In a filing to the Bombay Stock Exchange Videocon said it has signed an agreement with Anadarko Indonesia Nunukan Company for acquiring a 12.5 per cent stake in the PSC.     

The PSC would cover the area of Nunukan Block, located off the shores of Indonesia, and the joint operating agreement between Videocon Indonesia Nunukan Inc and three other parties would be made effective from August 1, 2009.     

Besides, Anadarko, Indonesia Nunukan company has also entered into a similar pact with BPPL Ventures Indonesia, an arm of Bharat Petroleum Corp, under which BPPL Ventures would acquire a 12.5 per cent interest in the Nunukan Block.     

Pursuant to the closing of the agreement, Anadarko would hold a 35 per cent stake, Medco E&P Nunukan would hold 40 per cent, while BPPL Venture and Videocon would hold 12.5 per cent stake each in the PSC.     

Shares of Videocon were trading at Rs 244, up 1.69 per cent in the afternoon trade on the BSE.

Bharat Petroleum Corporation (BPCL), in a separate filing to the stock exchanges, said its Indonesian arm has entered into an agreement with Anadarko Petroleum for acquiring a 12.5 per cent stake in Nunukan PSC.     

"BPRL venture, the Indonesian subsidiary of BPCL's commitment is estimated at USD 11.125 million for a drilling commitment in the Nunukan block during mid 2010," BPCL said in a filing to the BSE.     

The joint operating agreement between BPRL Ventures Indonesia BV and Nunukan PSC would be effective from August 1, 2009, it added.     

Shares of BPCL were trading at Rs 591.80, up 5.76 per cent in the afternoon trade on the BSE.