OVL signs exploration pact with Petrobras of Brazil

13 September 2006

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.