04.27.2006
NEW DELHI (AFX) – India's state-run Oil and Natural Gas Corp (ONGC) plans to pay oil giant Royal Dutch Shell about 170 mln usd for a 15 pct stake in a Brazilian oil field, the Press Trust of India (PTI) news agency reported.
'The upfront payment for acquiring a 15 pct stake in block BC-10 is about 170 mln usd,' ONGC chairman and managing director Subir Raha told reporters, PTI said.
Another senior ONGC executive, R.S. Butola, said the company would spend another 234 mln usd as its share of the cost involved in bringing the field to production by the end of 2009.
ONGC's overseas investment arm — ONGC Videsh Ltd or OVL — and Royal Dutch/Shell inked an agreement recently that assigned a 15 pct stake in BC-10 to the Indian company.
Shell would remain the operator of the field with a 50 pct stake while Petrobras of Brazil will own the remaining 35 pct.
'Essentially, this is a good prospect… Petrobras and Shell went out of the way to provide ONGC entry into BC-10,' Raha said.
Butola said the field holds 400 mln barrels of oil reserves and has the potential to produce 100,000 barrels per day.
OVL has interests in Sudan, Libya, Myanmar, Iran, Iraq and Syria.
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