BPCL, Videocon Industries rally as Petrobras JV strikes oil in Brazil

BPCL and Videocon Industries rose by 6.12% to 7.89% at 14:16 IST on BSE after a drilling campaign off Brazil's northeastern coast showed that an area controlled by Petrobras and the Indian companies likely holds more than a billion barrels of oil.

BPCL jumped 6.12% to Rs 328.70. Videocon Industries surged 7.89% to Rs 183.30.

Meanwhile, the S&P BSE Sensex was down 44.93 points or 0.23% at 19,848.92

BPCL had underperformed the market over the past one month till 26 September 2013, rising 1.52% compared with the Sensex's 7.2% rise. The scrip had also underperformed the market in past one quarter, sliding 10.9% as against Sensex's 7.23% rise.

Videocon Industries had underperformed the market over the past one month till 26 September 2013, falling 0.47% compared with the Sensex's 7.2% rise. The scrip had also underperformed the market in past one quarter, sliding 17.58% as against Sensex's 7.23% rise.

Videocon Industries announced during trading hours today, 27 September 2013, that Brazil's state-run oil company Petrobras and IBV Brasil, a 50-50 joint venture between BPCL and Videocon Industries, have determined that "SEAL-11" exploration block contains very large amounts of high-quality light crude oil and natural gas. The SEAL-11 block and adjacent areas, 100 kilometers off the coast of the Brazilian state of Sergipe, may hold more than 3 billion barrels of oil in place, according to reports. If confirmed, that would make the block -- owned 60% by Petrobras and 40% owned by IBV -- one of the biggest global discoveries of the year.

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