Anil Agarwal’s primary interest in the Videocon group is consolidating ownership of the Ravva oil field, his company said in a June 9 statement to the London Stock Exchange.
Thirteen Videocon Group companies with a presence in oil and gas, consumer electronics, home appliances, telecom and real estate now belong to Twin Star Technologies Ltd.
Twin Star Technologies is an Indian subsidiary of Volcan Investments Ltd. based in the UK, which is the holding company of Anil Agarwal, which founded the Vedanta Resources group.
Globally, Volcan’s business interest ranges from zinc, iron ore, steel, copper, aluminum, electricity, oil and gas, etc., according to the company. statement.
Videocon companies were bankrupt and had a plan to rehabilitate the Twin Star is approved by the National Court of Companies earlier this month.
“We are delighted with this acquisition, mainly because of Videocon’s 25% stake in the Ravva oil field. Therefore, this acquisition will consolidate the total PI Volcan Group to 47.5%, the most in the Ravva JV agreement, followed by ONGC (40%) and Ravva Oil Singapore (12.5%), ”the statement said. “In addition to oil, Videocon Group also has a diverse asset base in the real estate and electronics segment, which will further bring synergies with our growing electronics and LCD business.”
The Ravva oil field is located in Andhra Pradesh and began production in March 1993. It is operated by Cairn Oil & Gas, India’s largest private producer of crude oil. Cairn, once a listed company, is now a vertical company of Vedanta Ltd. and operates with 58 blocks across India.
Cairn owns a 22.5% stake in the field, while the state-owned Oil and Natural Gas Corporation Ltd. has 40%, Videocon Petroleum has 25% and Ravva Oil has a balance of 12.5%. In 2019, Cairn provided a 10-year extension to its production-sharing agreement.
Following the closure of the Videocon Group’s insolvency resolution process, Vedanta’s interest in Ravva will more than double.