The Hindu Business Line : ONGC plans to rope in Brazil's Petrobras for KG Basin

New Delhi March 9 State-owned ONGC has decided to offer oil and gas blocks to Brazil's national oil company, Petrobras, for possible farm-in activities. ONGC, which is looking for technological support in deepwater activities, has inked an agreement with the Brazilian oil firm that would enable Petrobras to view the data of nine blocks, which are potential farm-in assets, a senior ONGC executive said.

In other words, the foreign company would be brought in as a partner in the project for development and production activities of a particular block. Both ONGC and Petrobras have been actively exploring opportunities for collaboration in E&P activities in the two countries as well as third countries, he said adding that the blocks are mainly in Krishna Godavari Basin, with some in Bengal Basin and two in Western onshore. The tie-up would be different from what ONGC has recently struck with Italy's ENI, the executive told Business Line.

With Petrobras, there will be no asset swap, but the two entities would be striking a commercial deal. "What we are looking at is what kind of value addition the Brazilian firm can bring in," the executive said. A decision to offer datas of nine blocks for viewing was taken at the first three-day joint working group meeting between the two oil majors, which concluded on Wednesday. "We are hopeful of firming up the blocks and the commercial deal for bringing in Petrobras as a farm-in partner in next month and a half," he said.

The discussions in this JWG meeting revolved around possible opportunities of farm-in by Petrobras in existing Indian acreages of ONGC and overseas acreages of ONGC Videsh Ltd (OVL). Farm-in possibilities by ONGC and OVL in existing Petrobras acreages in Brazil and abroad were also discussed. Specifically, the discussion revolved round ONGC's 27 deepwater blocks including NELP-6 blocks, he added.

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