State-owned Oil India Ltd. and Oil & Natural Gas Corp. are to pay US $2.475 billion for a 10% stake in a giant gas field offshore Mozambique.

Oil India and ONGC’s overseas unit ONGC Videsh Ltd. said they will buy fellow Indian player Videocon Mozambique Rovuma 1 Ltd. (a unit of Videocon Industries Ltd.), which owns 10% of the Rovuma Area 1 Offshore Block. The acquisition is expected to be implemented via a newly incorporated entity, in which OVL and OIL are expected to hold 60% and 40% stakes respectively.

The Indian acquisition is still subject to approvals from the Mozambique and Indian governments, as well as pre-emption rights from the other companies in the project, which also include India’s Bharat Petroleum and Japan’s Mitsui & Co. Oil India expects to complete the deal by the fourth quarter of this year, it said in a regulatory filing.

Deepwater Area 1 in the Rovuma Basin offshore Mozambique covers 2.6 MM acres and is estimated to hold recoverable gas resources of between 35-65 Tcf. It is planned for development via a co-ordinated offshore development tied back to a multi-train LNG plant onshore, and is due onstream by 2018.

Operator Anadarko Petroleum is also reportedly still looking to sell 10% of its stake in the block, while last year Thailand’s PTT E&P outbid Royal Dutch Shell to buy an 8.5% share from Cove Energy.