JOIN USUS oil and gas explorer Anadarko Petroleum Corp and Indian billionaire Venugopal Dhoot have launched the auction of a 20 per cent stake in a Mozambique gas field that could fetch $4.5 billion, sources familiar with the matter told Reuters.
The Rovuma offshore field is drawing major interest after recent discoveries boosted Mozambique's gas reserves to around 150 trillion cubic feet, enough to supply number one importer Japan for 35 years. The east African country is expected to compete with Australia and Qatar as a major provider of liquefied natural gas (LNG) to Asia in the future.
PetroChina and Exxon Mobil Corp are among suitors expected to submit indicative proposals, sources with direct knowledge of the matter told Reuters. Royal Dutch Shell Plc, which last year missed out on a stake in the same field when it lost a takeover battle for Cove Energy Plc, is also interested, they added.
Shell and Exxon declined to comment. PetroChina officials were not available for comment.
Dhoot, who controls consumer electronics to mobile-phone services conglomerate Videocon Group, is leading the process and has hired two investment banks to handle the sale, the sources added.
First round bids are due on March 14 after an information memorandum on the sale was sent to potential bidders in early February, one of the sources added.
Anadarko CEO Al Walker last month told an earnings conference call that the company was looking to sell a 10 per cent interest in the block, taking the firm's stake to 26.5 per cent.
Anadarko, the project operator, has the highest interest, while Japan's Mitsui & Co Ltd is the second-biggest holder with a 20 per cent stake.