Shell, ONGC to pre-empt Petrobras oil block sale to Sinochem

|By:, SA News Editor

Royal Dutch Shell (RDS.A, RDS.B) and India’s ONG plan to exercise their pre-emption rights to buy a 35% stake in a Brazilian oil block that Petrobras (PBR) had planned to sell to China's Sinochem, Reuters reports.

PBR is shedding non-core assets to help finance a $237B, five-year investment plan, and it agreed last month to sell its stake in the Parque das Conchas block in Brazil's Campos Basin for $1.54B to Sinochem.

Shell, which is operator of the block with a 50% stake, is set to take 20%-25% more with ONGC taking 10%-15%.