Videocon may exit Indonesian oil block

India?s diversified business group Videocon Industries said it may exit its Indonesian oil and gas asset if it gets an attractive price.

?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,? Rajkumar Dhoot, Managing Director, Videocon Industries, told India?s Business Line.

This will not be the first time Videocon divests overseas asset. The company sold its stake in Mozambique?s Rovuma Basin, the largest offshore gas discovery in East Africa, as it had to repay debt.

However, Dhoot said: ?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.?

Videocon 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.?

Videocon had acquired 12.5 percent interest in the Nunukan Production Sharing Contract on September 7, 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 other partners in the block are Indonesia?s state-owned oil and gas firm PT Pertamina and privately-owned Medco, and Bharat Petroleum arm Bharat PetroResources Ltd. (*)