News: ONGC signs pact with Petrobras

(PTI 13/09/2006) Mumbai - Oil and Natural Gas Corp (ONGC), India's largest oil producer, has signed an agreement with Petrobras of Brazil for cooperation in oil and gas exploration.

ONGC Videsh Ltd, the overseas arm of ONGC, signed a memorandum of understanding (MoU) with Petrobras at the Presidential Palace in Brasilia, Brazil yesterday, a company release said.

The MoU was signed by R S Sharma, Chairman OVL and ONGC Group of Companies, and Jose S Gabrielli De Azevedo, President and CEO Petrobras in the presence of Prime Minister of India, Manmohan Singh, and President of Brazil, Luiz Incacio Lula da Silva.

OVL and Petrobras would jointly pursue exploration and production opportunities in India, Brazil and third countries.

"The MoU encompasses strategic cooperation and participation in the exploration and production of hydrocarbon resources on-land as well as in shallow and deepwater areas," it said.

In April, OVL acquired 15 per cent equity in Block BC-10, located on the prolific Campos basin in Brazil's deepwaters for $410 millio. Shell is the Block operator, holding a 50 per cent participating interest, while Petrobras holds the remaining 35 per cent stake.

"The Block is currently under development and the production is scheduled to commence in the last quarter of 2009, with OVL's equity share at peak production expected to reach about 1 million tonnes per annum," it said.