The Hindu : Business : ONGC, Petrobras sign agreement

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Tuesday, Jun 05, 2007
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ONGC, Petrobras sign agreement

Staff Reporter

Stakes offered in exploration blocks

NEW DELHI: Oil and Natural Gas Corporation (ONGC) and Brazilian oil company Petroleo Brasileiro SA (Petrobras) on Monday signed an agreement that will give the two companies stakes in each other's exploration blocks.

While Petrobras has offered 25-30 per cent stake to ONGC in three exploration blocks in Barrierinhas, Sergipe-Alagoas, and Santos basins off the east coast, ONGC has offered 15-40 per cent stake in its three deep-water blocks in Mahanadi, Krishna-Godavari and Cauvery basins.

The agreement was signed by ONGC Chairman and Managing Director, R. S. Sharma, OVL Managing Director, R. S. Butola, and Petrobras President, Jose Sergio Gabrielli de Azevedo, in the presence of the Prime Minister Manmohan Singh and Brazilian President, Luiz Inacio Lula da Silva. "This marks an increased presence of ONGC Videsh in Brazil and the entry of Petrobras in India. The agreement was the culmination of the MoU signed with Petrobras in September 2006 in Brasilia.

"We look forward to partnering Petrobras, one of the most renowned companies in deepwater operations. We strongly believe the expertise of Petrobras in deepwaters will be utilised in the development of our offshore blocks in India," ONGC head R. S. Sharma said in a statement issued here.

Petrobras had in April last year accommodated OVL by waiving its right of pre-emption in the (Brazilian) offshore Block BC-10 where the Indian firm acquired 15 per cent interest from Shell, the release said.

Shell has 50 per cent stake in the block. Petrobras has the remaining 35 per cent.

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