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ONGC to raise E&P stake in Brazil

17th September 2013

The company plans on buying further into Brazil as China’s influence grows

OVL is looking to beat Sinochem in the race for a 35 per cent stake in the Campos Basin block

ONGC’s overseas arm, ONGC Videsh (OVL) has plans to grow its presence and acreage in oil and gas across Brazil, The Economic Times reported on Tuesday, as part of plans to counter China’s growing stake in the region.

 

OVL is looking to beat Chinese oil and gas company Sinochem in the race for a 35 per cent stake in block BC-10, located in the Campos Basin.

 

OVL already owns 15 per cent of the block, with giant Petrobras owning 35 per cent.

 

Sinochem has offered USD 1.54 for a 35 per cent share in BC-10, but OVL have a privilege to buy a further stake in the block before it can be offered to any other company.

 

"In Brazil, we have time till the end of this month to exercise our pre-emptive rights," said Shyamal Bhattacharya, director of operations at OVL. 

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