share of cost of developing field is USD 748.05 million, of which USD 383 million has already been spent. The first two phase of the project are estimated to cost USD 4.987 billion (OVL's share of 15 per cent bring USD 748.05 million).
The BC-10 block off Brazil lies in ultra-deep water of 2,000 metres and began production in 2009. The Ostra field in the block pumps about 21,000 barrels per day of oil.
A second-phase development is expected to start by the end of this year, with a peak production of 35,000 barrels of oil equivalent per day.
"When Petrobras put its 35 per cent stake in BC-10 for sale, OVL evinced interest but for strategic reasons did not place a bid," a source said.
Shell too did not put a bid for the stake and unlike OVL, it did not even visit the dataroom Petrobras had set up to lure potential buyers.