Petrobras, ONGC sign E&P agreement

José Sergio Gabrielli de Azevedo, Petróleo Brasileiro S/A president, and ONGC executives Radhey Shyam Sharma, chairman of the ONGC group of companies, and R. S. Butola, CEO of ONGC Videsh Ltd., signed a partnership agreement on June 4 in New Delhi.

Offshore staff

RIO DE JANEIRO -- José Sergio Gabrielli de Azevedo, Petróleo Brasileiro S/A president, and ONGC executives Radhey Shyam Sharma, chairman of the ONGC group of companies, and R. S. Butola, CEO of ONGC Videsh Ltd., signed a partnership agreement on June 4 in New Delhi. The agreement, which also involves ONGC (OVL), ONGC's international branch, is for the operatorship of six deepwater exploration blocks, three in Brazil and three off Inida's eastern coast.

The Brazil blocks are in the Sergipe-Alagoas basin in Maranhão and the Santos basin. The Indian blocks are in the deepwater Krishna-Godavari, Mahanadi, and Cauvery basins. At least one well will be drilled in each block, Petrobras says.

Following this initial agreement, the partners foresee cooperation opportunities in several oil industry activities, especially offshore E&P in India, Brazil, and other countries, Petrobras says.

ONGC, which produces 600,000 b/d of oil and 70 MMcm/d of gas, has sought to diversify its operations by investing in other countries. It recently purchased 15% participation in the Shell-operated Ostra, Abalone, Argonauta, and Nautilus fields, in Brazil's Campos basin, in which Petrobras has 35% participation.

Petrobras has participated NELP bids in India since 2005, but had no direct partnerships with ONGC before now.

During negotiations with ONGC, Petrobras identified areas of common interest regarding technology as well as E&P, Petrobras says.

6/5/2007

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