Videocon Ind, BPCL surge on hopes of higher reserves in Rovuma basin

Texas-based Anadarko Petroleum, the operator is expected to shortly announce a significant upgrade in estimated reserves in the basin.

Shares of Videocon Industries and Bharat Petroleum Corporation Limited (BPCL) have rallied more than 3% each on reports that Texas-based Anadarko Petroleum, the operator of the Rovuma Offshore Area 1 in southern Africa, is expected to shortly announce a significant upgrade in estimated reserves in the basin.

Videocon Industries and BPCL hold 10% each in six blocks in the deep-water Rovuma Basin, off the Mozambique coast through their wholly owned subsidiaries.

“The new discovery would make the basin's reserves 20 times the size of India's KG-D6 and make Mozambique a major exporter of liquefied natural gas (LNG),” the report suggests.

Videocon Industries has surged over 8% at Rs 184 after opened at Rs 173 on the National Stock Exchange. A combined volume of 1.7 million shares have already changed hands in the counter in late morning trades, against an average sub one million shares that were traded daily in past two weeks on both the exchanges.

BPCL is trading higher by 4% at Rs 727 with a combined 390,637 shares changing hands on the counter so far.