The drums may be beating in far away Brazil, but it's samba time for Videocon Industries here in India. The company is said to be looking to spin off of its strategic interest in oil and gas exploration into a separate entity and monetising it. The anticipated bonanza from the second exploratory well in the BM-C-30 block in the Wahoo oil and gas field off the Brazilian coast gives reason for such a move.
VB (Brasil) Petroleo Pvt Ltd, the 50:50 joint venture between Videocon and Bharat Petroleum Corp (BPCL), holds 25% working interest in the block. US-based Anadarko Petroleum Corp owns 30% and is the operator, while Devon Energy Corp holds a 25% interest and SK do Brazil has 20%.
The Videocon-BPCL JV acquired the 25% stake in the block from Canadian firm EnCana Corp at a price of $283 million (over Rs 1,300 crore) in September 2007, two months before oil was discovered in Wahoo by Brazilian state-owned firm Petrobras.
The 800 km X 200 km marine pre-salt belt is expected to hold as much as 150 billion barrels of oil, second only to Saudi Arabia, which has an estimated 265 billion barrels. Indeed, just the first discovery in the region, Petrobras' Tupi field, has been estimated to have around 8 billion barrels of oil equivalent, not to mention the other multi-million-barrel reserves discovered by Petrobas in the area, which have pushed up Brazil's oil reserves well beyond the earlier estimate of 14 billion barrels.crackcrack