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ONGC’s overseas arm acquires additional 12% stake in Block BC-10 in Brazil

31 Dec 2013 Evaluate

Oil and Natural Gas Corporation’s (ONGC) wholly owned subsidiary- ONGC Videsh, through its affiliate has acquired an additional 12% Participating Interest ( PI) in Block BC-10, a deepwater offshore block in Campos Basin, Brazil taking its total PI in the block to 27%. The operator, Shell holds the balance 73% PI in the block.

ONGC Videsh had acquired 15 % PI in Block BC-10 in 2006. The other partners in the block were Shell, Operator with 50% PI and Petrobras with 35% PI. In August 2013, Petrobras entered into an agreement with Sinochem for sale of its 35% PI in the block. This agreement was subject to pre-emption rights of the partners. Shell and ONGC Videsh exercised their pre-emption rights for acquisition of 23% PI and 12% PI respectively. On approval of the Brazilian regulatory authorities for acquisition, the transaction has been completed on 30th December, 2013. ONGC Videsh has paid a purchase consideration of $ 561 million for 12% stake in the block.

ONGC is a premier oil and gas company in India, accounting for 71% of the country’s crude oil production and 54% of its natural gas production in 2011-12. It is also a significant producer of value added products such as liquefied petroleum gas (LPG), superior kerosene oil (SKO), and naphtha. GoI is the majority shareholder in ONGC, with a 69% equity stake as of now.

ONGC Share Price

283.05 -0.30 (-0.11%)
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Peers
Company Name CMP
ONGC 283.05
Oil India 465.35
Jindal Drilling&Inds 535.35
Deep Industries 473.85
Asian Energy Service 312.75
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