Simmons & Simmons has advised India's state-owned oil production giant on its $2.48bn (£1.61bn) acquisition of a 10% stake in an African gas field. 

ONGC Videsh (OVL), a subsidiary of the country's largest oil exploration and production company ONGC, signed an agreement this week with Oil India to jointly buy a 10% share in the Mozambique LNG asset from Videocon Mauritius Energy, part of the Videocon Group.

Under the terms of the transaction, OVL and Oil India will form a special purpose vehicle, and are expected to hold respective stakes in Rovuma 1 – the entity which owns the gas field – of 60% and 40%.

The area itself, the Rovuma Offshore Block known as Area 1, is estimated to have recoverable gas reserves of 35 to 65tr cubic feet, and is thought to be among the largest LNG-producing hubs so far discovered in East Africa.

An LNG project is being planned to export gas produced from Area 1 and its adjacent block by 2018.

Simmons acted for ONGC Videsh and Oil India on the deal, with a team led by Hong Kong corporate partners Vivien Yang and Ian Wood, with assistance from associates in Hong Kong, Singapore, Dubai and London.

Representing seller Videocon was Amarchand & Mangaldas & Suresh A. Shroff Co, with co-managing partner Shardul Shroff leading. Delhi partners Vidyut Gulati, Nikhil Narayanan and Puja Sondhi were also involved.

Domestic outfit Pereira, S