Oil Cooperation Varun Sells 51 Percent of Oil Block In Madagascar to Chinese Partner
Varun Group which holds exploration rights for the Onshore Oil Block 3101 in Madagascar (covering an area of about 6884 Sq. Km). has entered into joint venture with Da Qing, one of the leading Oil companies in China.
Mumbai/India; Honk Kong/PR China – Under the agreement Varun group has agreed to sell 51 per cent of its stake in the oil field to Da Qing group of China through Sure King Varun, a Honk Kong based SPV of both companies, for US $ 150 million. Da Qing has committed to arrange for oil exploration and necessary fund raising process for the program.
With the above arrangement Varun group will have the twin benefit of getting continued revenue through oil exploration process and also have liquidity which they propose to utilise for other previously programmed capex needs. Apart from the above, SKVHL, the SPV based in Hong Kong in which Varun group holds 49 per cent stake will be able to leverage on the strong presence and strength of Da Qing group to trade in oil sector.