24 Jan , 2022 By : monika singh
NEW DELHI – Shares of ONGC NSE 2.26 % climbed 2.4 per cent in early trade on Monday as ONGC Videsh Ltd (OVL) - the overseas investment arm of the state-owned player - declared a 2019 gas discovery in deep sea block in Brazil as commercially viable and said it has now entered the development stage that will bring it to production.
ONGC’s scrip rose to a high of Rs 167.45 as against Rs 163.60 at previous close on the BSE.
OVL had registered a major gas discovery in 2019 in its deep offshore block BM-SEAL-4, Brazil, located in the Sergipe Alagoas Basin, PTI reported. Brazil’s Petrobras is the operator of the block with 75 per cent Participating Interest (PI) while OVL has the remaining 25 per cent stake, PTI’s report said.
The company said it “after detailed evaluation (has) now enters into the development stage with the submission of the Declaration of Commerciality (DoC) for the block BM-SEAL-4”. The field also holds oil reserves.
The block development module of Petrobras envisages the installation of a shared FPSO and a gas pipeline.
According to PTI report, the name suggested to the Brazilian regulator for the field is Budião.
“The development module is presently in the contract planning phase and is expected to start production after 2026. The Consortium plans to continue all operational activities for submission of the Development Plan to the Regulator and meeting the target for the first oil, PTI’s report quoted the company as saying.
The firm neither gave investment nor production details.
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