INDIA BUSINESS WORLD - NOVEMBER 16^th - NOVEMBER 30^th - 2007

ONGC VIDESH (OVL), ONGC'S FOREIGN ARM WINS 2 OIL BLOCKS IN BRAZIL

ONGC's foreign arm ONGC Videsh has bagged two exploration blocks in Brazil. The deepwater block 470 in the Espirito Santo basin and shallow water Block 1413 in Santos basin are stated to be highly prospective. "ONGC Videsh (OVL) had made a focused bidding for some of the blocks and it was very satisfying for the company to have won the two prioritised blocks," OVL managing director RS Butola said.

For Block ES 470 won by ONGC Videsh, competitive bids were offered by a consortium led by Petrobras and another consortium led by Perenco. Whereas for block SM 1413 bids were offered by Petrobras and Ecopetrol.

OVL already has a minority interest in block BC-10 which is under development and has recently signed the Farm-out Agreement with Petrobras for three offshore blocks. ONGC Videsh has been among twenty four which qualified as operator 'A' including Petrobras, Shell, Exxon, ENI, Chevron. Agencia Nacional do Petroleo (ANP), the regulatory agency of Brazil, had announced the opening of Brazil bidding round 9. Bids have been invited for 271 blocks in nine basins. Seventy four exploration and production (E&P) companies had applied for these blocks.

"The bids were opened in the presence of the participants on November 27, 2007. A total of around R$ 2.1 billion (almost around $1.2 billion) was offered by the companies as signature bonus which has created a record and surpassed all expectations," Mr Butola said.

"This success is a step further towards consolidation of OVL's activities in Latin America, for the much needed equity oil for India," ONGC chairman RS Sharma said. In September, OVL had won three blocks, one in consortium with Ecopetrol and Petrobras and two in consortium with Ecopetrol, in the Carribbean bid round of Colombia, of which it is the operator in two.