Business
OVCL, Brazil firm sign MoU
9/13/2006
- By Our Correspondent
New Delhi, Sept. 13: ONGC overseas arm, ONGC Videsh, has signed a MoU with Petrobras of Brazil, for strategic cooperation and participation in exploration and production of oil and gas. According to a statement issued by ONGC, the MoU was signed by Mr R.S. Sharma, chairman ONGC Videsh and ONGC Group of Companies, and Mr Jose S. Gabrielli De Azevedo, president and CEO Petrobras, in the presence of Prime Minister Manmohan Singh and Brazil President Mr Luiz Incacio Lula da Silva at the Presidential palace in Brasilia, Brazil.
The MoU will facilitate opportunities for joint collaboration by these two companies in India, Brazil and third countries. In April 2006, Petrobras accommodated ONGC Videsh's acquisition of 15 per cent of the equity in Block BC-10, located on the prolific Campos Basin in Brazil's deepwaters.
Shell is the block operator, holding a 50 per cent participating interest, with Petrobras holding the remaining 35 per cent interest. BC-10 Block is located in approximately 1,800 metre water depth, 120 kms off the Brazilian coast, and hosts eight exploration and five appraisal wells drilled to date.
Initial studies suggest a substantial estimated recoverable reserve of oil and gas over the producing life of the field. The block is currently under development and the production is scheduled to commence in the last quarter of 2009.