Indian state-run Oil and Natural Gas Corp (ONGC) said its overseas arm has agreed to buy an additional 12% stake in a Brazilian oil block from Brazil’s Petrobras for $529 million in a preemption deal that blocks Sinochem.

The block is operated by Shell who holds a 50% stake, while ONGC already owns 15% of the block. Shell and ONGC Videsh served a preemption notice on September 17 to jointly acquire the 35% stake.

Petrobras had earlier agreed to sell its 35% stake in the block to China’s Sinochem Group for $1.54 billion, but the deal was subject to preemption rights of ONGC and Shell.


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