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Shell, ONGC buy rest of oil block

01/06/2014 | 01:11am US/Eastern

Royal Dutch Shell and India'sOil and Natural Gas Corp (ONGC) purchased the remaining 35 per cent of a Brazilian offshore oil block from their partner, Brazil's state-run Petroleo Brasileiro, Shell said in a statement.

Under the accord, which the companies began negotiating in September, Shell will get an additional 23 per cent of BC-10, raising its stake to 73 per cent. ONGC, as the Indian company is known, will get an additional 12 per cent, boosting its stake to 27 per cent, Shell said.

Petrobras had originally agreed to sell its 35 per cent stake to China'sSinochem for $1.56 billion. Shell and ONGC, though, exercised their right of first refusal.

© Al Bawaba Ltd., Acquiremedia 2014
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