No need for issue of bonus shares: ONGC

 The ONGC share of Rs 10 is currently being traded for over Rs 1300. Once this is split into a share of Rs 5 or Rs 2, the trading price will fall making it affordable for retail investor.

Meanwhile, ONGC Videsh (OVL), the overseas arm of ONGC, has announced it will buy a 15% stake in a Brazilian oil field from Royal Dutch Shell. OVL will take the stake in BC-10 block in Brazil, sources said but did not give financial details.

OVL had originally bought us ExxonMobil's 30% stake in BC-10 for $330 million. It had committed another $ 490 million as its share of development cost.

Shell would remain operator of the field with a 50% stake while Petrobras will own the other 35%, sources said. Shell operates the Bijipura and Salema fields off the coast of Brazil where it has an interest in 14 exploration blocks.

 BC-10, is located in water depths ranging from 1,500 to 2,000 meters about 120 kilometers southeast of the city of Vitoria in Brazil's Espirito Santo state.

According to Shell, it has a potential to produce about 1,00,000 barrels of oil a day with estimated reserves of 400 million barrels. 

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