The overseas arm of Oil and Natural Gas Corp., ONGC Videsh Ltd, announced recently it purchased an additional 12% shareholdings in a Brazilian oilfield. The purchase was worth USD529 million and it effectively blocked the entry of a Chinese company into the said business.
OVL had exercised the pre-emptive right to block the purchase of China's Sinochem Group for its bid for 35% in the oilfield from its owner, Petrobras. OVL currently owns 15% together with Royal Dutch Shell. In the pre-emption right, OVL would acquire 12.08% and Shell would purchase the remailing 23%. The pre-emption notice was served last September 17.
According to a statement released by the company, "In August 2013, Petrobras entered into a sales transaction with Sinochem for disposal of their 35% interest in BC-10 for USD1.543 billion. This agreement was subject to pre-emption rights of the partners Shell and OVL."
It added, "On closing, OVL's stake in the block would increase to 27%."
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