Oil India to raise $900-m debt for Mozambique venture

Our Bureau Mumbai | Updated on July 01, 2013 Published on July 01, 2013

Oil India Ltd will be raising debt of about $900 million by September for funding its recent acquisition in the Rovuma hydrocarbon block in Mozambique.

Options like external commercial borrowing (ECB), bridge loan and floating bonds in the international market are under consideration, said the company’s Chairman and Managing Director, S.K. Srivastava, on Monday.

Interacting with the media at a press conference here, Srivastava said some banks and financial institutions were offering loans at two per cent interest rate, including London Interbank Offered Rate (Libor) and processing charges. Such rates were really very attractive, he said. Giving an overview of the Rovuma field in Mozambique, Srivastava said the gas field a “super giant” with reserves of about 35-65 trillion cubic feet of gas.

Production is slated for 2017, and some of the gas would be brought to India, he added.

Srivastava said for the current fiscal, the company had capital expenditure of Rs 3,600 crore, for which another $250 million would be raised through the ECB route.

Published on July 01, 2013
This article is closed for comments.
Please Email the Editor