ONGC Videsh Seeks to Raise its Stake in Block BC-10



India's ONGC Videsh Ltd (OVL), the overseas arm of state-owned Oil Natural Gas Corporation Ltd. (ONGC), exercised its pre-emption rights to acquire part of the 35 percent interest in Block BC-10 that Brazil's Petroleo Brasileiro S.A. (Petrobras) planned to sell to China's Sinochem Group for $1.54 billion, the Press Trust of India (PTI) reported Wednesday.

OVL and fellow joint venture partner Royal Dutch Shell plc will acquire Petrobras' stake in Block BC-10, sources with direct knowledge of the development said. The Indian upstream company will take a 12.08 percent stake and the remaining 23 percent will go to Shell. The two companies - which have a first right of refusal when a fellow participant offer its stakes for sale - have informed Petrobras about their decision.

At present, OVL has a 15 percent stake in the block, while Shell is the operator with 50 percent share. OVL Managing Director D K Sarraf declined comment citing confidentiality in the joint operating agreement, PTI said.

Sinochem inked an agreement with Petobras in August to acquire the Brazilian firm's stake in Block BC-10, known as Parque das Conchas. Production in the block, which is located in water depths of around 5,839.9 feet in the Campos Basin off Brazil, commenced in 2009.



WHAT DO YOU THINK?


Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

RELATED COMPANIES