Videocon has discovered more reservoir intervals of light oil and gas in Brazil. This is the third appraisal well in Farfan area, discovered in October 2012. Talking about this discovery, Venugopal Dhoot, CMD of Videocon said the Brazil discovery is 3-4 times more than The Bombay High reserves.
Below is the edited transcript of Venugopal Dhoot’s interview to CNBC-TV18
Q: A consortium in which Videocon via joint venture holds close to about 20 percent stake has established some oil reserves in Brazil. Can you walk us through what the potential is of this oil reserve, the quantum?
A: Videocon has been drilling oil in Australia, Indonesia, Oman, Mozambique and Brazil. We have discovered so much of oil, but did not have a development plan in Brazil. Now we are putting a plan together after which production will start. This will be the first time since the discovery that we are in a position to give production details and programs. Generally in oil business — if you discover oil in 2007 then by 2017 you start production. So the petroleum companies have to wait for ten years. Now the ten years are almost getting over, we are getting ready with a production plan.
Q: Can you give us first a sense that you have made various discoveries in the past in Brazil. So what would be the total oil reserves in Brazil as of now?
A: Total reserve in Brazil is high. I would say this is three to four times of Bombay High discovery. So, this is a huge discovery. We have given this to BMM, which gives the final number, which is then given to Government of Brazil before it is finally published. But I can just say that it is three times of the Bombay High total reserve. We have put it into development plan and further discovery is going on. The discovery is continuing for five-six years. So, it is one of the largest oil and gas field and petroleum field. So this is very nice for us, our partner BPCL and Government of India because we can take back this oil to India.
Q: You indicated that the new development plan is getting finalised. So after that we will know more about the production timelines as well. How soon will the plan get final and when could you see the first of the production?
A: Production will now take from about two and half years i.e. 30-35 months it will take and then the production starts and then the production will continue till the oil reserves in 30-40 years. Then the oil can come to India also and there will be gas also. Gas will be consumed in Brazil only because Brazil requires the gas.
So, this is a good field for Videocon and Videocon has been doing oil exploration across the globe but Indonesia, Brazil all these has been very successful and Mozambique as we know we have disposed off. So our petroleum business to Videocon is playing very good and in future times to come Videocon will be a major petroleum company in the world and also in India.
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