OVL may set up JV with Petrobras

ONGC Videsh, the overseas arm of Oil and Natural Gas Corporation, is likely to join hands with Petrobras, the Brazilian state-owned company, for exploration in Latin America.

Ministerial level talks are on for a joint venture exploration and the topic will be discussed during the Indian delegation's visit to Brazil at the end of this month, sources said.

"The Brazilian major has plans to join the new exploration and licensing policy VI oil block bid. The company had earlier bid for NELP V, which was not successful. Oil India Ltd officials are likely to take part in the meetings to be held with Petrobras. The company has plans to jointly bid with ONGC in NELP VI," they added.

The Indian delegation is visiting London, Houston, Brisbane, Perth, Kuala Lumpur, Dubai, Calgary and Rio de Janeiro for NELP VI and coal bed methane III bid campaign. Fifty-five blocks are on offer for bidding in the NELP VI licensing round. Among the total blocks, 24 are in deep water, 6 in shallow water and 25 are onshore.

Petrobras has presence in 15 countries across three continents. It covers the entire operation chain in the oil and energy industry, ranging from oil and natural gas exploration, production and refining to gas processing, byproduct distribution, marketing and transportation through pipelines. Petrobras produces petrochemicals and generates, distributes and transmits electric energy.

"Recently, Anand Sharma, minister of state for external affairs had discussions with Brazilian government and Petrobras officials in Sao Paulo. After that meeting both the governments are hopeful of the alliance," official said.

OVL have alliance with some foreign companies in oil and gas exploration.

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