Bharat Petroleum Corporation (BPCL) has agreed to match the offers made by Brazilian entities for VOVL’s oil basins, reported the Economic Times, citing sources.
VOVL, which is undergoing corporate insolvency, is the oil and gas exploration unit of Videocon Industries, an Indian multinational conglomerate. VOVL’s lenders will now vote on the BPCL plan, the sources said.
According to one of the sources, most are likely to vote in favour of BPCL.
BPCL’s subsidiary BPRL Ventures BV established a 50-50 partnership with Videocon Energy Brazil, a subsidiary of Videocon, to explore oil and gas in Brazil.
Under Brazilian law, as a partner of the joint venture, BPCL has the primary option to match any offers received by lenders for the VOVL oil basins.
Last month, the majority of VOVL’s lenders approved the sale of the Potiguar Basin and Sergipe Basin to Eneva for $250m.
In addition, they voted to sell the Campos Basin to PetroRio for $30m
They also granted BPRL Venture BV the initial opportunity to match the offers made by Eneva and PetroRio.
BPCL did not respond to a request for comment from the publication.
Separately, the publication reported that IndianOil (IOC) and ONGC Videsh, a unit of ONGC have abandoned talks to buy a stake in Tullow Oil’s Kenyan assets.
Last March, IOC expressed interest in acquiring a stake in the Lokichar oil field in Kenya.
However, the initial discussions with Tullow faded, and subsequently IOC onboarded ONGC Videsh
Tullow currently holds a 50% stake in the south Lokichar field and is open to giving up operatorship in favour of a strategic partner.
France’s Total and Africa Oil Corporation each hold a 25% stake in the project.
Lokichar oil fields are situated in blocks 10BB and 13T, with projected oil production of 120,000 barrels per day.