Sources told Bloomberg that Oil & Natural Gas Corp (ONGC) would be exercising its right to acquire a 12% stake in the Parque das Conchas oil field in Brazil. ONGC Videsh, the overseas unit of India's biggest explorer, already told Petroleo Brasileiro (Petrobras) about its intention to buy the stake. One source said the price tag of the stake was pegged at over USD 500 million.

Last month, Petrobras said it would be selling its 35% stake in the Brazilian offshore oil field to China-based Sinochem Group. The deal would be worth USD 1.54 billion. However, Petrobras also said the other stakeholders of Parque das Conchas held the right of first refusal. They would also be able to block the offer of Sinochem. Block operator Royal Dutch Shell owned 50% of the oil field while ONGC held 15%.

The Press Trust of India reported that ONGC Videsh and Shell would buy the Petrobras stake. Shell would acquire the 23% and ONGC would get the remaining stake.