News Release Details
Petrobras to pick up 30% stake in ONGC's KG basin block
New Delhi 28-Jun-2007
Brazilian Oil Company Petto Brasileiro (Petrobras) has agreed to pick up 30% stake in one of ONGC's discovered gas blods in the Krishna Godavari basin. The company, among the largest deepwater oil producers in the world, with jointly operate the block, KG-DWN-98/2, with ONGC. Confirming the development, ONGC officials said: "We will offload 15% stake in the KG basin block in favor of Petrobras. The Brazilian company will acquire an additional 15% menthe development plan is approved by the Directorate General of Hydrocarbons (DGH). A signature bonus with be paid to ONGC when the deal is signed. 7 The two companies hafrreached an agreement on swapping of interests in offshore blocks earlier this month, during the visit of Brasffian President Luiz Incio Lula da $Uva. ONGC's overseas arm ONGC Videsh.(OVL) is likely to get equity in three blocks in Barrier in-has, Sergipe-AIagoas and Santos basins in Brazil's east coast. Petrobras had earlier accommodated OVL by waiving its pre-emption right in the offshore block BC-lO in Brazil in favour of OVL and a 15% interest was transferred to OVL the companies also have a MoU to jointly participate in the oil and gas exploration. Upstream regulator DGH, in its recent submission to the petroleum ministry, has pegged ONGC's gas reserves in the KG basin at 2.09 trillion cubic feet. Petrobras officials could not be immediately readied for their comments. A mail sent to the company remained un answered. Analysts here said ONGC needs cutting edge technology to develop the KG-DWN-98/2 gas discovery. This is an ultra deep water block and needs to be drilled to depth of over 3,000 meters. Petrobras, which has such expertise, could be a good partner for the block. Meanwhile, the public sector oil major is waiting for deep waterless that are expected to1 arrive by December 2007 to drill below 3,000 meters of water depth. It now has rigs that can group to2, 000metres. Commercial product on from this block will take about five years. ONGC is also learnt to be in talks with other big-oil companies like Chevron, Total and Shell to swap its blocks with them.
New Delhi 28-Jun-2007
Brazilian Oil Company Petto Brasileiro (Petrobras) has agreed to pick up 30% stake in one of ONGC's discovered gas blods in the Krishna Godavari basin. The company, among the largest deepwater oil producers in the world, with jointly operate the block, KG-DWN-98/2, with ONGC. Confirming the development, ONGC officials said: "We will offload 15% stake in the KG basin block in favor of Petrobras. The Brazilian company will acquire an additional 15% menthe development plan is approved by the Directorate General of Hydrocarbons (DGH). A signature bonus with be paid to ONGC when the deal is signed. 7 The two companies hafrreached an agreement on swapping of interests in offshore blocks earlier this month, during the visit of Brasffian President Luiz Incio Lula da $Uva. ONGC's overseas arm ONGC Videsh.(OVL) is likely to get equity in three blocks in Barrier in-has, Sergipe-AIagoas and Santos basins in Brazil's east coast. Petrobras had earlier accommodated OVL by waiving its pre-emption right in the offshore block BC-lO in Brazil in favour of OVL and a 15% interest was transferred to OVL the companies also have a MoU to jointly participate in the oil and gas exploration. Upstream regulator DGH, in its recent submission to the petroleum ministry, has pegged ONGC's gas reserves in the KG basin at 2.09 trillion cubic feet. Petrobras officials could not be immediately readied for their comments. A mail sent to the company remained un answered. Analysts here said ONGC needs cutting edge technology to develop the KG-DWN-98/2 gas discovery. This is an ultra deep water block and needs to be drilled to depth of over 3,000 meters. Petrobras, which has such expertise, could be a good partner for the block. Meanwhile, the public sector oil major is waiting for deep waterless that are expected to1 arrive by December 2007 to drill below 3,000 meters of water depth. It now has rigs that can group to2, 000metres. Commercial product on from this block will take about five years. ONGC is also learnt to be in talks with other big-oil companies like Chevron, Total and Shell to swap its blocks with them.