ONGC Videsh Limited Wins 2 Blocks in Brazil

ONGC's wholly-owned subsidiary ONGC Videsh Ltd. has bagged two blocks in Brazil: deepwater Block 470 in the highly prospective Espirito Santo basin and shallow water Block 1413 in another highly prospective Santos basin.

Earlier, Agncia Nacional do Petrleo (ANP) announced the opening of Brasil Round 9, in which, 271 blocks, distributed among nine basins, totaling almost 73,000 kilometers in deepwater, shallow water and onshore were on offer. Seventy four E&P companies had applied for qualification; ONGC Videsh was among 24 that qualified as Operator A.

The companies submitted bids on November 27, 2007. A total of about R$ 2.1 billion (almost U.S. $ 1.2 billion) was offered by the companies as signature bonus which has created a record and surpassed all expectations.

OVL already has a minority interest in Block BC-10 which is under development and has recently signed the Farm-out Agreement with Petrobras for three offshore blocks.

In September, OVL won three blocks, one in consortium with Ecopetrol and Petrobras, and two in consortium with Ecopetrol, in the Carribbean bid round of Colombia, of which it is the operator in two.