ONGC Videsh ltd on Monday said it bought an additional 12 per cent stake in a Brazilian oilfield for $529 million after blocking a Chinese entry.
OVl, which had a 15 per cent stake in block BC-10 along with Royal Dutch Shell, exercised a pre-emption right to block China’s Sinochem Group from buying a 35 per cent interest in the oilfield from Petrobras of Brazil.
While the Indian firm will pick up a 12.08 per cent stake, Shell will acquire the remaining 23 per cent.
“In August 2013, Petrobras entered into a sales transaction with Sinochem for disposal of their 35 per cent interest in BC-10 for $1.543 billion. This agreement was subject to pre-emption rights of the partners Shell and OVl,” the company said in a statement.
Shell and OVl served the pre-emption notice to jointly acquire 35 per cent on September 17.
“As a follow-up of the pre-emption notice, OVl through its affiliates has signed Sale and Purchase Agreements with Petrobras on October 11 for acquisition of 12 per cent interest in the block, for a consideration $529.03 million,” it said.
The acquisition of additional participating interest in the block is subject to approval of the Brazilian antitrust and regulatory authorities.
“On closing, OVl’s stake in the block would increase to 27 per cent,” the statement added.
Block BC-10, also known as Parque das Conchas, is in the Campos Basin of Brazil and includes four offshore deep-water fields - Ostra, Abalone, Argonauta and Nautilus - and a few identified exploration prospects.
The water depth in the block ranges from 1,500 to 1,950 meters and it is located about 120 km from Vitoria town. The licence for the fields expires in December 2032.