Offshore Industry ONGC Videsh Buys Into Brazilian Offshore Field

Editor: Dominik Stephan

Indian oil companies have set their sights on South America's crude reserves: ONGC Videsh just signed definitive agreements to acquire 12% Participating Interest in Block BC-10 in the South Atlantic off the coast of Brazil...

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(Picture: PROCESS)

New Delhi/India - ONGC Videsh, through its affiliates signed definitive agreements to acquire 12% Participating Interest (PI) in Block BC-10, Campos Basin, Deep Offshore Brazil. ONGC Videsh had earlier acquired 15 % PI in the block in 2006. The other partners in the block were Shell, Operator with 50% PI and Petrobras with 35% PI. In August 2013, Petrobras entered into a Sales Transaction with Sinochem for disposal of their 35% PI in BC-10 for USD 1543 million.

This agreement was subject to Pre-emption rights of the partners Shell and ONGC Videsh. A pre-emption notice was served on 17th September 2013 by Shell and ONGC Videsh to jointly acquire 35%, in which 12% PI corresponds to ONGC Videsh. As a follow up of the Pre-emption Notice, ONGC Videsh through its affiliates has signed Sale and Purchase Agreements with Petrobras on 11th October 2013 for acquisition of 12 % PI in the block, for a consideration USD 529.03 Million. On closing, PI of OVL would increase to 27%.

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