ONGC thwarts Sinochem’s Brazil deal

More interest: ONGC Videsh increasing stake in Parque das Conchas field, where Espirito Santo FPSO is producing

India’s ONGC Videsh has signed a deal with Brazil’s Petrobras to acquire an additional 12% interest in the Parque das Conchas field off Brazil.

Exercising its pre-emption right in the block, ONGC signed the sale and purchase agreement with Petrobras on 11 October in a $529 million deal for the stake, the Indian company claimed in a statement.

ONGC, along with its partner Shell, served a pre-emption notice with Petrobras on 17 September to jointly acquire a further 35% interest in the Brazilian block.

"The acquisition of (an) additional participating interest in the block is subject to approval (by) the Brazilian antitrust and regulatory authorities,” ONGC said.

OVL already has a 15% participating interest in the block and, along with the additional stake of 12%, its total stake would go up to 27%.

In August, Petrobras agreed with China’s Sinochem to sell a 35% participating interest in the block, formerly known as Block BC-10, for $1.543 billion.

However, ONGC and Shell were reported to be readying use of their pre-emption rights, thereby scuppering the stake sale to the Chinese player.

The offshore Parque das Conchas block lies in the Campos basin and includes four deep-water fields - Ostra, Abalone, Argonauta and Nautilus - along with some additional exploration prospects.

Separately, ONGC also confirmed that is was awarded two onshore blocks in Burma's latest licensing round. The acreage is Block B2 in Zebyutaung-Nandaw and Block EP-3 in Thegon-Shwegu.

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