Mumbai: ONGC Videsh Ltd (OVL), the overseas arm of Oil and Natural Gas Corp (ONGC), has signed an agreement with Petrobras of Brazil under which the two would cooperate in oil and gas exploration.

This memoradum of understanding (MoU) between ONGC and Petrobras was the first to be signed between India and Brazil during prime minister Manmohan Singh's ongoing visit to that country.

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

ONGC group chairman R S Sharma and Petrobras CEO Jose S Gabrielli De Azevedo signed the agreement in the presence of Manmohan Singh and Brazilian president Luiz Incacio Lula da Silva.

"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," an ONGC statement said.

OVL had in April acquired a 15 per cent stake in Brazil's offshore oil block BC-10, located on the Campos basin, for $410 million. The block is operated by Shell, which holds a 50-per cent stake with Petrobras holding the remaining 35 per cent.

The agreement comes ahead of a major economic and political cooperation initiative among India, Brazil and South Africa.

Prime Minister Manmohan Singh, President Lula Da Salva of Brazil and president Thabo Mbeki of South Africa are meeting at the first summit of leaders of these countries at the India-Brazil-South Africa dialogue forum.

The meeting is expected to finalise a declaration calling for closer cooperation among the three countries in areas like agriculture, energy, defence, health, science and technology and trade and investment.

Issues like the need for concerted fight against terrorism, UN reforms, especially the question of expansion of the Security Conch and universal nuclear disarmament are some of the political issues that are expected to be discussed at the summit.

The leaders will also discuss the implementation of the India-Mercosur preferential trade agreement and a possible widening and deepening of other similar initiatives such as the India-Mercosur and Southern African Customs Union.

The ISBA dialogue would also cover efforts to remove structural bottlenecks for facilitating maritime transport, agriculture, ethanol, information society and several other areas.