OVL pulls out of Brazil’s Poco-Verde oil block

ONGC Videsh Ltd has pulled out of Brazil’s Poco-Verde oil block where a new light oil discovery was made earlier this week. 

OVL, has put in a written application for withdrawing from the Poco-Verde area in the Sergipe-Alagoas offshore basin where Brazil’s state-run Petroleo Brasileiro SA (Petrobras) earlier this week announced discovery of a new light oil deposit. 

“Based on techno-economic evaluation, ONGC Videsh had assigned its rights in Poco-Verde area to Petrobras on September 3, 2014 and the process for notification of the partial withdrawal to the regulator is currently in progress,” the company said. ONGC said Petrobras had on June 1 announced a new well 3-SES-189, located in the Poco Verde PAD area of the BM-SEAL 4 concession area, discovering new oil accumulations. OVL will, however, continue with its 25% stake in the Moita Bonita Pad within BM-SEAL-4 block.