ONGC enters in pact with Petrobras

The country's largest upstream company "� Oil and Natural Gas Corporation (ONGC) "� has tied up with Brazilian major Petrobras for joint exploration and production activities in each other's countries.

"In the seventh round of auction of oil blocks in India (NELP VII), Oil and Natural Gas Corporation will be our main partner. We will participate actively in the seventh round," Petrobras Director (E&P), G Astrella, said on the sidelines of an international petroleum conference.

Once the deal is inked, the two companies will also jointly bid for exploration blocks under the ninth round of auctions in Brazil, he added.

Astrella, however, stopped short of a definite statement on the Brazilian company taking a stake in the Krishna-Godavari basin (K-G) block.

"There is a possibility that we may pick up a stake in the K-G basin," he said.

Industry sources say that there are active talks currently in progress between the two companies for the Krishna-Godavari basin block, for which British companies British Petroleum and British Gas are also reported to be in the race.

The two companies had signed a memorandum of understanding (MoU) in September 2006 for strategic cooperation and participation in the exploration and production of hydrocarbon resources.