(From left) ONGC chairman Subir Raha, Vikram Singh Mehta, chairman of Shell Companies in India, and Guy Outen, Shell vice-president for exploration and production, in New Delhi on Thursday. (AFP)

New Delhi, April 27: ONGC-Videsh (OVL) has signed an agreement with Shell to pick up a 15 per cent stake in an offshore oilfield in Brazil for around $170 million.

The BC-10 block in the deep waters off the Brazilian coast is operated by Shell. OVL will have to invest up to $410 million before oil starts flowing in the last quarter of 2009.

OVL chairman R.S. Butola said the oilfield is expected to yield 1,00,000 barrels per day.

OVL picked up the share after Exxon-Mobil, which had a 30 per cent stake in the block, decided to pull out. While OVL had struck a deal with Exxon for the 30 per cent stake, its acquisition depended on Shell and Petrobras exercising their pre-emptive right.

While Shell chose to increase its share to 50 per cent, Petrobras agreed to waive its right and allow OVL to acquire a 15 per cent stake.

ONGC chairman Subir Raha said Petrobras, the Brazilian national company, had accommodated ONGC by giving up its right of pre-emption.

Guy Outen, Shell vice- president for exploration and production, said: ?We believe that an increased interest in BC-10 is an attractive opportunity and re-confirms our commitment to growth in Brazil.?