ONGC Videsh ups stake in Brazil oilfield by 12%
2 Jan 2014 4:39 AM IST
The flagship Indian firm had along with Royal Dutch Shell exercised a pre-emption right to block China's Sinochem Group from buying their partner Brazilian national oil firm Petrobras' 35 per cent interest in the BC-10 oilfield.
OVL and Shell bought the 35 per cent interest of Petroleo Brasileiro SA's share for $1.636 billion. This stake was split between OVL and Shell — the Indian firm picked up 12 per cent while the remaining 23 per cent went to Shell.
Shell increased its stake to 73 per cent from 50 per cent, while OVL's stake climbed to 27 per cent from 15 per cent in the Parque das Conchas project, also known as BC-10, OVL said in a statement.
The heavy-oil BC-10 block, about 110 kilometres off southeast Brazil, started production in 2009 and is currently producing 50,000 barrels of oil equivalent a day. Shell is the operator of the project.
'OVL had acquired 15 per cent interest in Block BC-10 in 2006. The other partners in the block were Shell with 50 per cent interest and Petrobras with 35 per cent. 'In August 2013, Petrobras entered into an agreement with Sinochem for sale of its 35 per cent interest in the block for $1.543 billion.
This agreement was subject to pre-emption rights of the partners. Shell and ONGC Videsh exercised their pre-emption rights for acquisition of 23 per cent and 12 per cent interest, respectively,' the statement said.
OVL said the transaction has received approval of the Brazilian regulatory authorities and the acquisition was completed on 30 December.
Block BC-10, also known as Parque das Conchas, is in the Campos Basin of Brazil and includes four offshore deep-water fields — Ostra, Abalone, Argonauta and Nautilus — and a few identified exploration prospects.
The water depth in the block ranges from 1,500 to 1,950 metres and it is located about 120 km from Vitoria town. The licence for the fields expires in December 2032.
Buffet strikes year-end petrochem deal
New Delhi: Warren Buffett-led Berkshire Hathaway Inc reached a deal to buy a Phillips 66 business that makes chemicals to improve the flow potential of pipelines for around $1.4 billion of stock, according to a news agency report. Phillips 66 said on Monday that Berkshire will pay for the unit — Phillips Specialty Products Inc — using about 19 million shares of Phillips 66 stock that it currently owns. ‘I have long been impressed by the strength of the Phillips 66 business portfolio,’ Buffett said in a statement. ‘The flow improver business is a high-quality business with consistently strong financial performance.’
The exact number of shares Berkshire will pay for the unit will be determined by their price on the closing date, the companies said. James Hambrick, CEO of Berkshire’s specialty chemicals unit Lubrizol Corp, will oversee the business, Buffett said. Berkshire bought Lubrizol for about $9 billion in 2011.
OVL and Shell bought the 35 per cent interest of Petroleo Brasileiro SA's share for $1.636 billion. This stake was split between OVL and Shell — the Indian firm picked up 12 per cent while the remaining 23 per cent went to Shell.
Shell increased its stake to 73 per cent from 50 per cent, while OVL's stake climbed to 27 per cent from 15 per cent in the Parque das Conchas project, also known as BC-10, OVL said in a statement.
The heavy-oil BC-10 block, about 110 kilometres off southeast Brazil, started production in 2009 and is currently producing 50,000 barrels of oil equivalent a day. Shell is the operator of the project.
'OVL had acquired 15 per cent interest in Block BC-10 in 2006. The other partners in the block were Shell with 50 per cent interest and Petrobras with 35 per cent. 'In August 2013, Petrobras entered into an agreement with Sinochem for sale of its 35 per cent interest in the block for $1.543 billion.
This agreement was subject to pre-emption rights of the partners. Shell and ONGC Videsh exercised their pre-emption rights for acquisition of 23 per cent and 12 per cent interest, respectively,' the statement said.
OVL said the transaction has received approval of the Brazilian regulatory authorities and the acquisition was completed on 30 December.
Block BC-10, also known as Parque das Conchas, is in the Campos Basin of Brazil and includes four offshore deep-water fields — Ostra, Abalone, Argonauta and Nautilus — and a few identified exploration prospects.
The water depth in the block ranges from 1,500 to 1,950 metres and it is located about 120 km from Vitoria town. The licence for the fields expires in December 2032.
Buffet strikes year-end petrochem deal
New Delhi: Warren Buffett-led Berkshire Hathaway Inc reached a deal to buy a Phillips 66 business that makes chemicals to improve the flow potential of pipelines for around $1.4 billion of stock, according to a news agency report. Phillips 66 said on Monday that Berkshire will pay for the unit — Phillips Specialty Products Inc — using about 19 million shares of Phillips 66 stock that it currently owns. ‘I have long been impressed by the strength of the Phillips 66 business portfolio,’ Buffett said in a statement. ‘The flow improver business is a high-quality business with consistently strong financial performance.’
The exact number of shares Berkshire will pay for the unit will be determined by their price on the closing date, the companies said. James Hambrick, CEO of Berkshire’s specialty chemicals unit Lubrizol Corp, will oversee the business, Buffett said. Berkshire bought Lubrizol for about $9 billion in 2011.
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