OVL to buy 15 per cent stake in Brazilian oil field

New Delhi: ONGC Videsh Ltd, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), will buy a 15-per cent stake in a Brazilian oil field, Block BC-10, from Royal Dutch / Shell.

Shell will continue to ne the operator of the field with a 50-per cent stake while Petrobras will own the other 35 per cent.

The BC-10 field has production potential of 100,000 barrels of oil a day and is located about 120 kilometres South East of Vitoria, in the state of Espirito Santo at a depth of 200 metres.

OVL had originally bought US energy giant ExxonMobil''s 30-per cent stake in BC-10 for $330 million and had committed another $490 million as its share of development cost. However, being the operator of the block, Shell had the first right of refusal on any stake sale by ExxonMobil. As Royal Dutch / Shell exercised its pre-emption right, OVL bought half of that stake.