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ONGC arm gets nod for more investment in Brazil


New Delhi : The Cabinet Committee on Economic Affairs (CCEA) Thursday authorised the overseas arm of Oil and Natural Gas Corp (ONGC) to make an additional investment of $70 million in its Brazilian block from its own resources.

Home Minister P. Chidambaram told reporters here that the $70-million investment by ONGC Videsh Ltd (OVL) will take its total cash infusion in the project at Campos Basin off the coast of Brazil to $383 million.

This excludes the $165 million spent on acquisition of the block, where OVL has 15 percent participating interest.

The cash sink of OVL’s share was revised from $410 million to $478 million with the additional investment approved by CCEA.

“The additional investment is expected to provide higher reserve accretion of hydrocarbon and more production from the project to OVL, thereby increasing the energy security of the country,” said the government in a statement.