India’s ONGC Videsh Ltd. (OVL) acquired a 12% interest in Parque das Conchas (Block BC-10), located in the Campos Basin offshore Brazil’s southeastern coast. Production from the second development phase began earlier this month.
Block BC-10 includes four offshore deepwater fields - Ostra, Abalone, Argonauta and Nautilus – along with a few identified exploration prospects. These subsea fields which are tied back to the Espírito Santo FPSO vessel. Water depths range from 1,500 -1,950m.
ONGC Videsh entered the project in 2006 by acquiring a 15% interest in Block BC-10, partnering with operator Shell (50%) and Petrobras (35%). Both ONGC and Shell increased their participation when Petrobras announced that it would be exiting the oilfield as part of its overall ongoing divestment plan. In August 2013, Petrobras entered into a Sales Transaction with China’s Sinochem for its 35% stake, in a deal ONGC valued at US$1,543MM. ONGC and Shell exercised their respective pre-emptive rights, giving Petrobras notice and effectively blocking Sinochem's bid on September 17.
Shell and ONGC Videsh jointly acquired 35%. Petrobras and ONGC Videsh then signed a sale and purchase agreements October 11 for 12%, valued at US$529.03 million.
ONGC Videsh has been showing interest in sourcing Latin American gas for its domestic use. On October 9, ONGC Videsh signed a memorandum of understanding with Venezuelan state oil company PDVSA to allow both companies to explore available opportunities through joint collaboration.
Shell remains as operator in BC-10 with 73% interest. ONGC Videsh claims 27%.The license for Block BC-10expires in December 2032.
Pictured is the Espírito Santo FPSO
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