India's Videocon May Sell Stake in Indonesian Oil, Gas Block

India’s Videocon Industries could exit its Indonesian oil and gas asset if it gets an attractive price, Rajkumar Dhoot, Managing Director, Videocon Industries, told Business Line newspaper last week.

“In Indonesia, at Nunukan, we are expecting some results on February 18.  Once we get the results we may divest the stake if we get a good price,” Dhoot said.

Videocon acquired 12.5% stake in the Nunukan PSC in 2009 from Anadarko Indonesia. The Nunukan block is located in offshore eastern Kalimantan and is the site of the Badik oil and gas discovery.

The company recently sold its 10% stake in a gas field in Mozambique’s Rovuma Basin to Oil India-OVL combine.  

“We sold the Mozambique asset as we wanted to re-invest. This has been our business model. If we do not unlock value, we cannot invest more in other areas. Our expertise is to take a block, drill, see that there are reserves and then sell,” Dhoot stated.

The group will use the same exit model for Indonesia. “We will invest that money again. We have a coal mine in Indonesia for which we need investment.”

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