Brazil's Petrobras in swap deal with India's ONGC

04 June 2007 14:40  [Source: ICIS news]

MUMBAI (ICIS news)--India’s Oil & Natural Gas Corporation (ONGC) said on Monday that it has reached an agreement with Brazil’s Petrobras over swapping interests in offshore blocks in India and Brazil.

 

This agreement marks Petrobras' entry into India and an increased presence for ONGC Videsh Limited (OVL) in Brazil.

 

“The companies have agreed to jointly participate in the oil and gas exploration in Brazil, India and third [world] countries. Today's agreement is the first step towards this strategic partnership,” said ONGC.

 

Petrobras, had earlier waived off its right of pre-emption in the offshore block BC-10 in favour of OVL and transferred a 15% interest in the block to OVL.

 

“This agreement is the culmination of the memorandum of understanding (MoU) that ONGC had signed with Petrobras in September 2006. It broadens our portfolio in Latin America and Petrobras’ expertise in deepwater will help in the development of ONGC’s offshore blocks in India,” said RS Sharma, chairman, ONGC.

 

ONGC’s stock closed down more than 1% at Rs900.45 ($22.21/€16.49) on Monday on the Bombay Stock Exchange (BSE).

 

($1=Rs40.3/€1=Rs54.1)

By: Divya Chowdhury
+65 6780 4359

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