ONGC Videsh Ltd (OVL), the overseas subsidiary of Indian state-owned Oil & Natural Gas Corporation (ONGC), plans to raise its stake in oil and gas fields in Latin America, to counter China's increasing influence in the region. OVL is focusing on Brazil and Venezuela, as the group has just exercised its pre-emptive rights over a 35% stake in the BC-10 block (Brazil), in which it already owns a 15% interest (Shell, 50%, operator). Petrobras is selling its 35% stake in this block and Sinochem (China) had offered US$1.54bn for this interest in the block. In Venezuela, OVL has a 11% stake in the Carabobo-I project and could exercise its pre-emptive rights over the 11% stake put on sale by Petronas in August 2013. Carabobo-I project is located in the Orinoco belt and can produce 480,000 bbl/d.
OVL has recently acquired a 20% stake in the Rovuma gas basin in Mozambique for US$5.11bn. The Area 1 in Rovuma represents the largest gas discovery in offshore East Africa with estimated recoverable resources of 99 to 184 bcm. In July 2013, OVL lost a US$5bn bid for a 8.4% stake in the Kashagan oil field in Azerbaijan.