ONGC Videsh to buy 12% of Petrobras take in Brazil block for $529 mn

ONGC Videsh Ltd, the overseas arm of state-run explorer Oil and Natural Gas Corp, will acquire an additional 12-per cent stake in a Brazilian oil block from Brazil`s Petrobras for $529 million.

ONGC Videsh, said it has signed definitive agreements to acquire 12- per cent participating interest in the deep offshore Block BC-10 in the Campos Basin in Brazil through its affiliates as part of the sale of 35 per cent share made by Petrobras.

ONGC Videsh had earlier acquired 15 per cent participating interest in the block in 2006.

The other partners in the block were Shell, the operator with 50 per cent participating interest and Petrobras with 35 per cent participating interest.

Petrobras had earlier agreed to sell its 35-per cent stake in the block to China`s Sinochem Group for $1.54 billion, but the deal was subject to pre-emption rights of ONGC and Royal Dutch Shell.

Shell and ONGC Videsh served a pre-emption notice on 17 nSeptember to jointly acquire the 35-per cent stake, ONGC said in a statement filed with the stock exchanges on Monday.

Accordingly, ONGC Videsh through its affiliates signed sale and purchase agreements with Petrobras on 11 October 2013 for acquisition of 12 per cent PI in the block, for a consideration $529.03 million.

On closing, OVL would have a participating interest of 27 per cent in the production block.

The acquisition of additional participating interest in the block is subject to approval of the Brazilian antitrust and regulatory authorities, ONGC said.