OVL bags two exploration blocks in Brazil

ONGC’s wholly-owned subsidiary ONGC Videsh Ltd. (OVL) has bagged two blocks in Brazil, viz. deepwater Block 470 in the highly prospective Espirito Santo basin and shallow water Block 1413 in another highly prospective Santos basin, amid stiff competition from International companies.

Earlier, Agncia Nacional do Petrleo (”ANP”), the regulatory agency of Brasil, had announced the opening of Brasil Round 9, in which, 271 blocks, distributed among nine basins, totalling almost 73,000 km in deepwater, shallow water and onshore were on offer. Seventy four E&P companies had applied for qualification; ONGC Videsh was among twenty four which qualified as Operator “A” including Petrobras, Shell, Exxon, ENI, Chevron.

In a public ceremony at the Windsor Barra Hotel, the companies submitted bids for the various blocks on offer and the bids were opened in the presence of the participants on 27th November 2007. A total of around R$ 2.1 Billion (almost around US$ 1.2 Billion) was offered by the companies as signature bonus which has created a record and surpassed all expectations.

For Block ES 470 won by ONGC Videsh (OVL), competitive bids were offered by a consortium led by Petrobras and another consortium led by Perenco. For another Block SM 1413 won by ONGC Videsh competitive bids were offered by Petrobras and Ecopetrol.