The Hindu Business Line : OVL to acquire 15 pc stake in Brazilian oil field

ONGC Videsh Ltd (OVL), the overseas arm of ONGC, is set to acquire 15 per cent stake, worth $400 million, in an oilfield in Brazil. The deal is expected to be signed soon, said an official said, adding that the Campos Basin BC-10 field is a discovered oilfield.

OVL has stake in 13 properties spread across a dozen countries, including Russia, Sudan, and Myanmar.

For the Brazilian oilfield, OVL's original plans to acquire ExxonMobil's 30 per cent stake ran into problems after Royal Dutch/Shell, the operator of the field which holds 35 per cent stake, decided to exercise its pre-emptive rights to the stake sale.

Brazil's State-owned Petrobas, which also holds 35 per cent stake in the field, has decided to forgo its pre-emptive rights in favour of OVL.

Sources said that with Petrobas having agreed to forego its rights in favour of OVL, the process is now on for Shell to first acquire ExxonMobil's stake. In turn, Shell will be transferring 15 per cent stake to OVL in a $400-million plus transaction.

OVL had got CCEA approval in December to invest $820 million in the Brazilian field, BC-10, for acquiring 30 per cent stake.

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