Shell, ONGC to buy Brazil oil field stake, blocking Sinochem's bid

|By:, SA News Editor

Royal Dutch Shell (RDS.A, RDS.B) and India's ONGC will increase their stakes in Brazil's Parque das Conchas oil field, blocking a bid from China's Sinochem, WSJ reports.

In exercising their pre-emption rights in the offshore field, ONGC would raise its stake by 12% to 27% at a cost of ~$500M, and Shell would increase its current 50% stake to 73%.

Petrobras (PBR) last month approved the sale of $2.1B of assets as it ramped up an ongoing divestment plan; as part of that, it said it would sell its 35% stake in Parque das Conchas to Sinochem for $1.54B.