Videocon Industries and BPCL consortium has won an oil exploration contract in Brazil worth $283 million. The amount includes $118 million reimbursement to the Canadian firms’ expenses. Rest of the amount will be paid to the owner of acquisitioned firm. The consortium of Videocon and Bharat Petroresources (a BPCL subsidiary) is 50:50 joint venture.

 

Videocon in its filing to BSE (Bombay Stock Exchange) said that the consortium with BPCL has acquisitioned the entire stake of Encana Brasil Petroleo Limitada (EBPL) from Canadian gas producers — EnCana and Alberta. The recent deal is in line with state owned oil companies' aggressiveness towards mergers and acquisitions in overseas oil fields.

 

Evidently, EBPL assets are ten deep water offshore petroleum exploration blocks in four Concessions in Brazil. Petroleo Brasileiro S.A. i.e. Petrobras, which is the national oil Company of Brazil, operates in three of these four Concessions. Similarly, Anadarko Corporation of USA operates with its Brazilian subsidiary in remaining block.