ONGC Videsh Ltd. has completed acquisition of an additional 12 per cent stake in a Brazilian oilfield for USD 561 million.

The Indian firm had along with Royal Dutch Shell exercised a pre-emption right to block China’s Sinochem Group from buying their partner Brazilian national oil firm Petrobras’ 35 per cent interest in the BC-10 oilfield.

OVL and Shell bought the 35 per cent interest of Petroleo Brasileiro SA’s share for USD 1.636 billion. This stake was split between OVL and Shell — the Indian firm picked up 12 per cent while the remaining 13 per cent went to Shell.

Shell increased its stake to 73 per cent from 50 per cent, while OVL’s stake climbed to 27 per cent from 15 per cent in the Parque das Conchas project, also known as BC-10, OVL said in a statement.

“In August 2013, Petrobras entered into an agreement with Sinochem for sale of its 35 per cent interest in the block for USD 1.543 billion. This agreement was subject to pre-emption rights of the partners. Shell and ONGC Videsh exercised their pre-emption rights for acquisition of 23 per cent and 12 per cent interest, respectively,” the statement said.

OVL said the transaction has received approval of the Brazilian regulatory authorities and the acquisition was completed on December 30.

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