Videocon bags Nigeria oil block

A global consortium led by Videocon Industries has won exploration rights for one block in Nigeria, the company has informed the Bombay Stock Exchange today.

The Nigerian government is trying to raise the country's oil reserves to 40 billion barrels by 2010 from the current 35 billion barrels through private partnership.

Videocon, however, refused to give details. The company chairman, Venugopal Dhoot, said the details, including the share of each company in the consortium, are yet to be finalised.

The move is part of Videocon Industries' attempt to branch out into the petroleum sector. In April this year, Dhoot had announced plans to buy up to 76 per cent stake in an offshore Sudanese field located in the Red Sea, again as part of a global consortium.

The company had also entered into a memorandum of understanding with the Sudanese government earlier this year for investing and developing oil projects there.

Videocon has also been prospecting for oil-infrastructure purchases in Russia, Ukraine and other parts of Africa.

Besides, the company had set apart Rs 800 crore for overseas acquisitions and promised to invest Rs 1,200 crore in domestic oil exploration when the bids are called for the blocks here.