ONGC gets Brazil's approval to farm out block in Santos basin

ANP, the petroleum regulatory authority of Brazil, has approved farming out a block to ONGC Videsh Ltd. ONGC Campos Limitada (OCL), Brazil, a wholly-owned subsidiary of OVL, had acquired the 100 per cent stake in the block, BM-S-73 (formerly S-M-1413) during ninth bidding round in 2007.

The offshore concession is located in the Santos basin and covers an area of 160.04 square kilometres. The concession is a part of Brazil’s ninth licensing round and is currently in exploration phase, OVL said in a press statement.

ONGC Campos Limitada, Petroleo Brasileiro SA, Petrobras and Ecopetrol Oleo Gas do Brasil LTDA, had entered into an agreement under the terms of which Petrobras will get 43.5 per cent share, Ecopetrol will get 13 per cent in the block BM-S-73 and 43.5 per cent will remain with ONGC Campos Limitada, the operator of the block.

ONGC Campos Limitada will get 43.5 per cent share from Petrobras and Ecopetrol in their block BM-S-74, who will have 43.5 per cent and 13 per cent share, respectively. The approval for this block is still awaited.