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Brazil/India: OVL ups stake in Brazilian oilfield following Chinese buyout attempt

By  |  October 14, 2013

The overseas operations of India’s state-owned Oil & Natural Gas Corp, ONGC Videsh Ltd., announced Monday the acquisition of an additional 12 percent of Brazil-based oilfield block BC-10 after barring a Chinese takeover, say reports.

OVL had already held a 15 percent stake in the oilfield along with Royal Dutch Shell.

Reports say China-based Sinochem Group pursued the acquisition of a 35 percent stake in the block, to be bought from Brazil’s Petrobras; the deal was thwarted by OVL, however, which exercised its pre-emption right to do so.

In addition to OVL’s 12 percent buyout – to be bought for $529 million – Royal Dutch Shell will obtain the remaining 23 percent of the stake divested by Petrobras.

The Brazilian company entered into an agreement to sell its 35 percent stake in the oilfield last August, say reports.

Full Content: Zee News

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