Videocon-BPRL venture strikes oil in Brazil block

Videocon has stated discovery is of more than 200 net feet of high-quality pay in pre-salt reservoir, with a total hydrocarbon column now established at 460 feet in BM-C-30

Videocon Industries on Tuesday announced a fresh discovery at an appraisal oil well at its Brazil block, BM-C-30, in which IBV Brasil, a wholly-owned subsidiary of Bharat PetroResources (BPRL) and Videocon Industries, has a 25 per cent working interest.

BPRL is the foreign arm of Bharat Petroleum Corporation (BPCL). In a statement to the BSE exchange, Videocon stated the discovery was of “more than 200 net feet of high-quality pay in a pre-salt reservoir, with a total hydrocarbon column now established at 460 ft”.

This was announced in Anadarko Petroleum Corporation’s third quarter operations report. US-based Anadarko owns 30 per cent in the block, as its operator, Devon Energy Corp, holds 25 per cent. SK do Brasil has another 20 per cent.

Pradeep N Dhoot, the Dubai-based director of the global exploration and production business of Videocon Hydrocarbon Holdings Ltd, said: “The notable success of the appraisal well has added to the hydrocarbon resources already indicated in the said block and is a further addition to the discoveries in our Brazilian concessions in the Sergipe Basin and Espirito Santos.”

Videocon’s stocks were down 1.1 per cent to Rs 177.35 at the BSE on Tuesday.

The Indian joint venture had acquired stake in the block from Canadian major EnCana Corporation, for about Rs 1,300 crore in 2007. Soon after, oil was discovered in the Wahoo field by Brazilian major Petrobas.

Recently, the company had announced a significant oil discovery in an ultra-deep water block off Brazil, where BPCL and Videocon hold 40 per cent interest. Petrobas, the operator in this block, had confirmed the Farfan-1 oil discovery in the Segipe-Alagoas basin last month.

Andarko estimates the Wahoo region shows similar characteristics to the nearby Jubarte 1-ESS-103A well, Brazil's first producing pre-salt field, having recently achieved reported initial rates of 18,000 barrels a day of light oil.