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India blocks China's bid in Brazil oilfield

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OVL blocks Chinese bid, to buy
stake in Brazilian oilfield
PTI | Sep 18, 2013, 12.27PM IST
NEW DELHI: In a first by an Indian
firm, ONGC Videsh Ltd (OVL) has
exercised its pre-emption rights to
block China's Sinochem Group from
buying 35% interest in a Brazilian
oilfield for $1.54 billion.
OVL, the overseas arm of state-owned
Oil and Natural Gas Corp (ONGC), in
collaboration with Royal Dutch Shell
will buy the 35% stake in block
BC-10, known as Parque das
Conchas, that Brazil's Petrobras had
planned to sell to Sinochem, sources
with direct knowledge of the
development said.
While the Indian firm will pick up
12.08% stake, the remaining 23%
will go to Shell.
Sources said OVL-Shell, who by virtue
of their existing stake in BC-10 had a
first right of refusal or pre-emption
when fellow participants offer stakes
for sale, have informed Petrobras
about their decision.
OVL currently has a 15% stake in the
block which is entitled for an extra
8% taken from the 35% stake being
sold by Petrobras. Shell is the
operator with 50% share.
But, OVL manged 12.08% after
convincing Shell to take a smaller
than its entitled stake, sources said.
OVL managing director D K Sarraf
declined to comment citing
confidentiality in the joint operating
agreement (JOA).
This is the first time an Indian firm
has exercised pre-emption rights to
block the sale of an oilfield stake to
a Chinese firm.
Petrobras is shedding non-core
assets to help finance a $237-billion,
five-year investment plan. Last
month, it agreed to sell its stake in
block BC-10, known as Parque das
Conchas, in Brazil's Campos Basin,
for $1.54 billion to Sinochem Group.
OVL, a few weeks back, lost out on
acquisition of US energy major
ConocoPhillips' 8.4% stake in
Kazakhstan's giant Kashagan oilfield
for $5 billion.
Kazakhstan first exercised its pre-
emption right to block the OVL deal
and then sold the 8.4% stake to
China National Petroleum Corp
(CNPC).
India has lost at least $2.5 billion of
deals to China in past years.
OVL had acquired 15% stake in
BC-10 in April 2006 for $165 million.
Additionally, its share of cost of
developing field is $748.05 million,
of which $383 million has already
been spent. The first two phase of
the project are estimated to cost $
4.987 billion (OVL's share of 15%
bring $748.05 million).
The BC-10 block off Brazil lies in
ultra-deep water of 2,000 metres and
began production in 2009. The Ostra
field in the block pumps about
21,000 barrels per day of oil.
A second-phase development is
expected to start by the end of this
year, with a peak production of
35,000 barrels of oil equivalent per
day.
"When Petrobras put its 35% stake
in BC-10 for sale, OVL evinced
interest but for strategic reasons did
not place a bid," a source said.
Shell too did not put a bid for the
stake and unlike OVL, it did not even
visit the dataroom Petrobras had set
up to lure potential buyers.
:cheers:

source= timesofindia
 
sorry to mention it but the truth is the massive scale Chinese construction seen in the past decades has already driven prices up. india will have to pay a much higher price to get all those raw materials to build its infrastructure and cities.

a crashed indian economy is also not helping.

Wow we Indian's are indeed simple minded people we block one of China's deal and it makes news here. These Chinese oil company's are in a league of their own. This must be an minor deal for them.

to give you a quick snapshot of the scale of those Chinese oil companies: China Petro and Sinopec had a combined revenue of almost 1 trillion USD last year, it is about 50% of india's GDP.

your country is losing the competition in every single aspect, your liar PM Singh and your highly corrupted system are destroying your future.
 
good move.... though long way to go to compete china's economy :tup:
 
A tiny deal in the wild world of oil politics where India has the preemptive right and has exercised so out of her own interests and our Indian friends jump with happiness?:azn:

This indeed shows how shallow some people are。

Just don't complain when China,also out of her own interests,exercises her veto to block India from gaining a permanent seat on the UNS?:wave:
 
A tiny deal in the wild world of oil politics where India has the preemptive right and has exercised so out of her own interests and our Indian friends jump with happiness?:azn:

This indeed shows how shallow some people are。

Just don't complain when China,also out of her own interests,exercises her veto to block India from gaining a permanent seat on the UNS?:wave:

wait and watch india will surpass you. just begining.
 
Wednesday, September 18th 2013 - 06:43 UTC

China will help Venezuela develop a huge oil field investing 14bn dollars

China’s hydrocarbons company Sinopec and Venezuela’s PDVSA (Petroleos de Venezuela SA) agreed investments to develop the Junin 1 oil field in the Orinoco oil strip, which will demand 14 billion dollars for a daily extraction of 200.000 barrels, said PDVSA president Rafael Ramírez currently in Beijing.

“In a meeting with China’s Sinopec we agreed to develop the oil field Campo Junin in the Orinoco hydrocarbons strip”, twitted Ramirez who is also Venezuela’s Oil and Mining minister.

“Developing Junin 1 demands of 14bn dollars for a daily production of 200.000 barrels, and we have reached an understanding with our Chinese friends both from Sinopec and Citic”, added the Venezuelan official.

Junin 1 is one of several exploitation blocks in which the Orinoco strip is divided and which according to official Venezuelan estimates, supported by independent reports, holds 300 billion of oil which is considered the world’s largest single reserve of hydrocarbons.:azn:

Ramirez in is Beijing as part of the preparatory meetings in anticipation of the coming trip of President Nicolas Maduro who is scheduled to visit China on September 21 to 24.

The Venezuelan official first met with Zhang Yaocan, President of oil and gas company Sinopec; and with the authorities of state-owned investment company Citic group, namely CEO Wang Jiong, and Madame Hong Bo, President of Citic Construction, a press release issued by Pdvsa reported

In both meetings, the portfolios of cooperation projects of Chinese enterprises in Venezuela were reviewed. The aforementioned companies are currently developing projects in several areas, namely, oil production and upgrade, housing, drills assembly, and the construction of oil industrial condominiums.

The Citic group formerly the China International Trust and Investment Corporation is a state-owned investment company established by Rong Yiren in 1979 with the approval of Deng Xiaoping.

President Maduro is scheduled to meet his peer Xi Jinping in his first overseas visit to one of Venezuela’s main trade partners. Venezuela sells approximately 600.00 bpd of oil to China, equivalent to 25% of oil exports.

“We are travelling to China to continue strengthening the close links with that several millenniums society which has offered so much to the development of the world”, Maduro said.

China will help Venezuela develop a huge oil field investing 14bn dollars — MercoPress
 
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