OVL inks MoU with Brazilian firm Petrobras

ONGC Videsh (OVL), the overseas arm of ONGC, has signed an MoU with Petrobras of Brazil for co-operation in oil and gas exploration.

The MoU was signed by R S Sharma, chairman of OVL and ONGC group of companies, and Jose S Gabrielli De Azevedo, President and CEO of  Petrobras in the presence of Prime Minister Manmohan Singh and Luiz Incacio Lula da Silva, President of Brazil, yesterday.

OVL and Petrobras would jointly pursue exploration and production opportunities in India, Brazil and other countries.

OVL had acquired 15% equity in Block BC-10, located on the prolific Campos basin in Brazil's deepwaters for $410 million, in April.

"The block is currently under development, and production is scheduled to commence in the last quarter of 2009. At peak, the annual production is expected to reach about one million tonne," the release said.