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The cabinet committee on economic affairs in India has approved the proposal that allows the ministry of petroleum and natural gas to authorize ONGC Videsh Ltd. and Oil India Ltd. to purchase interests in the Rovuma Area 1 block offshore Mozambique.

ONGC will acquire two separate interests, 10% from Videocon Mauritius Energy Ltd. for $2.475 billion, and 10% from Anadarko Mozambique for $2.64 billion.

The Rovuma Area 1 block is located in the deepwater Rouvma basin and covers with 2.6 million acres.