ONGC, Petrobras enter into block-swap deal

New Delhi, June 4 (UNI) State-owned Oil and Natural Gas Corporation Ltd (ONGC) today said it has reached an agreement with Brazilian oil major Petrobras on swapping of interests in offshore blocks in India and Brazil.

The deal will mark the entry of the Brazilian oil major into India, ONGC said in a statement. Petrobras had earlier allowed ONGC to acquire a stake in an exploration block off Brazil's east coast.

''India was always a strategic country for us. The nature of this deal emphasises the strength of our relationship with ONGC and our belief in the Indian story,'' President and CEO of Petrobras Jose Sergio Gabrielli De Azevedo said.

Meanwhile, Petrobras has offered 25-30 per cent stake to ONGC in three exploration blocks in Barrierinhas, Sergipe-Alagoas and Santos basins off the east coast.

In return, ONGC has offered 15-40 per cent stake in its three deep-water blocks in Mahanadi, Krishna Godavari (KG) and Cauvery basins off India's east coast.

ONGC Chairman R S Sharma said the expertise of Petrobras in deepwaters will be utilised in the development of offshore blocks in India.

''Brazil is an important element of our global growth strategy.

We believe that an increased interest in the area is attractive and re-confirms our commitment to growth in Brazil,''ONGC Videsh Ltd (OVL) Chief Executive Officer R S Butola said.

ONGC and Petrobras joined hands in April last year when the later had accommodated OVL by waiving its right of pre emption in the offshore block BC-10 in favour of OVL and a 15 per cent interest in the block was transferred to OVL.

UNI