ONGC Videsh and Petrobras have agreed in a memorandum of understanding to coooperate in exploration and production in shallow and deepwater areas, as well as onshore, in the two countries and also in other countries.
Offshore staff
BRASILIA, Brazil -- ONGC Videsh and Petrobras have agreed in a memorandum of understanding to coooperate in exploration and production in shallow and deepwater areas, as well as onshore, in the two countries and also in other countries.
In April 2006, Petrobras accommodated OVL's acquisition of 15% of the equity in block BC-10 of the Campos basin in Brazil's deepwaters. Shell is the operator, holding a 50% participating interest, with Petrobras holding the remaining 35%. BC-10 is in approximately 1,800 m of water 120 km off the Brazilian coast. It has eight exploration and five appraisal wells drilled to date.
The block is under development and the production is scheduled to commence in the 4Q09.
BC10, OVL's first venture in South America, calls for an upfront investment of about $410 million, including the acquisition consideration, plus an upside capex.
