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ONGC acquires stake in Brazilian offshore project

02nd January 2014

Acquisition in line with ONGC plans to grow E&P stake in Brazil

ONGC acquires stake in Brazilian offshore project
BC-10 contains estimated recoverable reserves of 400 million barrels of heavy crude oil

ONGC Videsh on Monday finalised the acquisition of part of Petrobras’ 35 per cent stake in the Parque das Conchas (BC-10) offshore project. ONGC Videsh will thus guarantee an extra 12 per cent share in the project, in addition to its previous 15 per cent stake.

 

The sale is valued at approximately USD 636m and was approved on 18 December by the ANP, the country’s oil and gas regulator. The acquisition follows plans by ONGC Videsh to grow its presence and acreage in oil and gas across Brazil.

 

Shell also received regulatory approvals to acquire the remainder of Petrobras's stake (23 per cent) in BC-10 for USD 1bn. The oil major will now hold a 73 per cent operating interest in the project, with ONGC Videsh holding the remaing 27 per cent.

 

BC-10 is located in the Campos Basin area, 120 kilometres southeast of the city of Vitoria, in water depths of 1,500 to 2,000 meters.  It consists of five fields – Ostra, Abalone, Argonauta B-West, Argonauta O-North and Nautilus –, containing estimated recoverable reserves of 400 million barrels of heavy crude oil.