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Brazil’s Petrobras enters India with ONGC

June 5th, 2007

Brazilian oil major — Petroleo Brasileiro S.A. (Petrobras) — will now get participating interest in exploration blocks of ONGC in India and ONGC, in turn will get to participate in oil blocks being explored by Petrobras in Brazil.

This reciprocating of interests in offshore oil and gas blocks of the two companies will come about in view of an agreement reached here on Monday over swapping of interests in offshore blocks in India and Brazil.

ONGC’s deepwater blocks, where Petrobras could hold stake include those in the Krishna-Godavari Basin, off Andhra Pradesh coast, and the Mahanadi Basin off Orissa coast. Petrobras has offered 25-30 per cent stake to ONGC in three exploration blocks and, in return, ONGC has offered 15-40 per cent stake in its three deep-water blocks. Preliminary agreement on these deals will be signed shortly.

`Strategic country’

According to a statement issued by ONGC, the agreement was signed today by Mr R.S. Sharma, Chairman, ONGC group of companies; Mr R.S. Butola, Managing Director of ONGC Videsh Ltd (OVL) and Mr Jose Sergio Gabrielli De Azevedo, President of Board of Directors of Petrobras, in the presence of the Prime Minister, Dr Manmohan Singh and the visiting Brazilian President, Mr Luiz Inácio Lula da Silva. Speaking on the development, the President and CEO of Petrobras said, “India has always been a strategic country for us.”

Source : Moneycontrol.com

Entry Filed under: Petroleum & Energy