ONGC Videsh Ltd on Monday said it has signed definitive agreements to acquire additional 12 per cent participating interest in block BC-10 in Brazil. Post the deal, OVL’s share in the acreage would increase to 27 per cent.
This is part of the sale of 35 per cent share made by Petrobras in the deep water block. In 2006, OVL had acquired 15 per cent interest in the offshore block in the Campos Basin of Brazil.
The other partners in the block were Shell (operator with 50 per cent stake) and Petrobras with 35 per cent. In August, Petrobras entered into a deal with Sinochem to sell its 35 per cent interest in the block for $1.543 billion.
This agreement was subject to pre-emption rights of the partners Shell and OVL. On September 17, the two companies served a notice to jointly acquire 35 per cent, in which 12 per cent interest corresponds to OVL.
On October 11, in follow up of the pre-emption notice, OVL has signed sale and purchase agreements with Petrobras for 12 per cent interest that is likely to cost $529.03 million.
The acquisition of additional share in the block is subject to approval of the Brazilian anti-trust and regulatory authorities, OVL said.
The Block BC-10, also known as Parque das Conchas, includes four offshore deep-water fields - Ostra, Abalone, Argonauta and Nautilus and a few identified exploration prospects. The block is in the deep-waters of Brazil in the water depths ranging from 1,500 to 1,950 meters and 120 km from Vitoria town on the shore. The licence for the fields expires in December 2032.
siddhartha.s@thehindu.co.in