New Delhi, July 7: The Videocon group, which is on a global expansion spree, is close to buying four oil blocks in Jordan next week.

“We have had preliminary discussions with Abdullah II, the king of Jordan. We were accompanied by the Indian ambassador to Jordan during our recent trip. The deal is likely to be signed in a week,” said V.N. Dhoot, chairman and managing director of the Videocon group.

Dhoot had travelled to Jordan earlier this week. “Videocon plans to make an initial investment of $75 million in these four oil fields. However, we expect to earn Rs 5,000 crore from this deal in the first tranche itself,” he said.

Under the agreement, Videocon will participate in the production, extraction and marketing of these oil blocks.

“At present, we are planning to put in all our energies in two areas ? consumer electronics and appliances and oil and gas,” said Dhoot.

The company is targeting blocks in West Asia and Africa for exploration as well. Videocon's domestic oil and gas interest includes a 25 per cent stake in the Ravva oil field, which provides net cash accruals of more than Rs 400 crore per year.

The company has also finalised a memorandum of understanding (MoU) to further its oil and gas interests in Sudan.

“We will invest close to $100 million in Sudan oil blocks. The proposal is likely to be cleared by the board of directors in a month,” Dhoot said.

He said Videocon was also planning to acquire two oil blocks in Nigeria as well. The company is expecting to get an oil field under the new exploration licensing policy NELP-V. It also plans to foray into gas distribution in Andhra Pradesh and Gujarat.

In March this year, Videocon Industries had announced it will raise close to Rs 2,000 crore, which will be invested in the petroleum sector.

The board of directors has approved the issue of global depository receipts and equity shares through a private placement or a rights issue for Rs 2,000 crore, including premium.