The group plans to foray into the oil extraction business from its rigs. It already has a strong presence in the oil exploration business with oil blocks across various countries
India’s consumer electronics giant and oil & gas exploration entity Videocon is planning to enter the oil extraction business and has received some proposals from foreign players.
“We are getting some foreign proposals on the extraction side for our oil rigs,” said SM Hegde, director, Videocon Group.
The group has a strong presence in the oil exploration business, both domestic and overseas. It is currently involved in exploration activities in various oil blocks. It has oil blocks in Australia, Brazil, Mozambique and Turkey.
Commenting on its oil blocks in Brazil and Mozambique, Mr Hegde said, “For the investments that we have made in Brazil and Mozambique, we are getting a very good feedback, making our investments more viable. Exploration at the Australian oil blocks is also going on, but there is not much indication as to what kind of reserves can be expected.”
The company also plans to start extraction activities in one of its Brazilian blocks by FY12. “For Brazil we are expecting extraction to start for one of the oil blocks, the Wahoo block, by next year end or by the first quarter of FY12,” he said.
Mr Hegde also highlighted that in the coming years, the oil & gas segment would be one of the main focus areas for the group. “Power, telecom and oil & gas will be the main focus of the group now,” he added.
Meanwhile, US-based Anadarko Petroleum Corp, the operator with about 43% paying interest in the Windjammer exploration well in the Rovuma Basin off Mozambique, said that it has reached an intermediate casing point and encountered more than 480 net feet of natural gas pay in high-quality reservoir sands, with a gross column of more than 1,200 feet. To date, this well has tested one of the seven identified play types in Anadarko’s operated acreage off Mozambique. Videocon Mozambique Rovuma 1 Ltd and BPRL Ventures Mozambique BV, a wholly-owned subsidiary of Bharat Petroleum Corp Ltd, hold an 11.75% stake each in the well.