Videocon-BPCL acquire Brazilian firm for $283 mn

Videocon-BPCL acquire Brazilian firm for $283 mn

Mumbai: Videocon Industries, in consortium with state-run refiner Bharat Petroleum Corp Ltd, has acquired a Brazilian oil exploration firm for $283 million (over Rs1,309 crore).

A 50:50 joint venture of Bharat PetroResources Ltd (a BPCL subsidiary) and Videocon Industries has completed the acquisition of the entire stake of EnCana Brasil Petroleo Limitada (EBPL) from Canadian gas producers - EnCana Corp and Alberta Ltd, Videocon on Thursday said in a filing to the Bombay Stock Exchange.

The acquisition has been made for a consideration of $165 million, while the consortium would also pay $118 million as reimbursement the Canadian firms’ expenses.

Last year, the domestic entities had entered into an agreement with the companies to acquire their exploration arm saying that the deal was for interests in 10 deep-water offshore exploration blocks in four concessions in Brazil.

While Brazil’s national oil company Petrobras operates in three concessions, US-based Anadarko Corporation’s Brazilian subsidiary operates in one concession, the filing said.

Shares of Videocon were trading at Rs229.40, up 5.54% in the afternoon trade on the BSE.