ONGC Videsh (OVL), the wholly owned subsidiary and overseas arm of ONGC, is considering investing approximately $1bn in the BM Seal-4 deep offshore block in Brazil, reported Enewsapp.

The Brazilian offshore hydrocarbons block is operated by Brazil’s state-run Petroleo Brasileiro (Petrobras) with a 75% stake while the remaining 25% stake is held by OVL.

OVL’s investment decision comes close after a declaration of commerciality (DoC) for the BM Seal-4 block, which is located within the Sergipe Alagoas Offshore basin.

An undisclosed individual was quoted by Enewsapp as saying: “Power diversification is crucial […] sooner than the Indian authorities with investments deliberate in Brazil.”

In 2019, OVL first made a major gas discovery in the offshore block.

A Petrobras spokesperson was quoted as saying in an emailed statement: “Petrobras informs that there’s no transaction relating to BM Seal-4.”

The move comes amid India’s efforts to secure liquefied natural gas (LNG) globally, following the cancellation of a contract between GAIL and Gazprom’s former subsidiary, Gazprom Marketing and Trading Singapore, reported CNBCTV18.

A consortium of OVL, Oil India, and Indian Oil Corp (IOC) are also looking to jointly purchase a stake in Russian Rosneft’s Vostok venture.

In a bid to diversify its energy supply, India is also considering investing in Novatek’s Arctic LNG-2 venture.

Brazil’s ambassador to India Andre Aranha de Lago in a recent interview said: “India is among the first international locations to simply accept the concept Brazil is a big participant in oil. Since Brazil is a brand new participant on this trade, it is vital that we have got as shut a courting as conceivable with India, which is a big client country.”