ONGC Videsh Ltd has pulled out of Brazil's Poco-Verde oil block where a new light oil discovery was made earlier this week.
OVL, the overseas arm of Oil and Natural Gas Corp (ONGC), has put in a written application for withdrawing from the Poco-Verde area in the Sergipe-Alagoas offshore basin where Brazil's state-run Petroleo Brasileiro SA (Petrobras) earlier this week announced discovery of a new light oil deposit.
"Based on techno-economic evaluation, ONGC Videsh had assigned its rights in Poco-Verde area to Petrobras on September 3, 2014 and the process for notification of the partial withdrawal to the regulator is currently in progress," the company said in a filing to stock exchanges.
ONGC said Petrobras had on June 1 announced a new well 3-SES-189, located in the Poco Verde PAD area of the BM-SEAL 4 concession area, discovering new oil accumulations.
OVL will, however, continue with its 25 per cent stake in the Moita Bonita Pad within BM-SEAL-4 block.
Petrobras holds the remaining 75 per cent interest.
