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A joint venture between the Indian government’s Bharat Petroleum Corporation Ltd (BPCL) and Videocon Industries, IBV Brasil, has found more than a billion barrels of oil in a field off the Brazilian coast.
The super-giant field could have a valuation of about $12 billion.
The Brazilian government-owned Petroleo Brasileiro and IBV Brasil had discovered the field, SEAL-11, containing a large amount of high-quality, light crude oil and natural gas. A super-giant field is one that holds more than a billion barrels of oil reserves.
The BPCL-Videocon venture owns 40 per cent stake in the field. The rest is owned by the Brazilian company. Investors of BPCL and Videocon cheered the biggest discovery of oil this year. Videocon’s stock closed the day 6.5 per cent higher at Rs 180.65, while BPCL’s was up six per cent at Rs 328.55 on the BSE on Friday.
| MAKING OF A SUPER GIANT |
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40% stake in Brazilian field held by joint venture, rest owned by local firm $12 billion is valuation estimate 3 billion barrels of oil may be available |
Actual reserves would be known once the appraisal plans are completed, in the next two years.
“This is the biggest overseas find by any Indian company and it will propel the Videocon-BPCL joint venture to join the club of one of the world’s biggest oil producing companies,” said an oil analyst.
Videocon Chairman V N Dhoot declined to comment on the issue. Sector insiders said SEAL-11 was likely to hold more than three billion barrels of oil.
For Videocon, the oil find could be a game-changer. It could transform the group from an India-based consumer durables company to a global oil giant..
In June this year, Videocon sold off its 10% stake in the Mozambique gas field to ONGC Videsh and Oil India for close to $2.5 billion -- in one of the most profitable exits in the recent times by any Indian company from an overseas venture.
Post its exit from Mozambique, Videocon is now focusing on Brazil and other international fields. In an earlier interview, Chairman Dhoot had said the company is shifting focus to emerge as a major player in the global oil and gas industry. “We have created huge and unprecedented value in our entire exploration portfolio built tirelessly over the last seven years globally ranging from Brazil to Indonesia to Timor and Australia,” Dhoot said.
