Brazil Petrobras to get 40 pct in ONGC block-paper

MUMBAI, March 3 (Reuters) - Brazil's Petrobras (PETR4.SA: Quote, Profile, Research, Stock Buzz) (PBR.N: Quote, Profile, Research, Stock Buzz) is set to take a 40 percent stake in a deep-water block owned by state-run Indian explorer Oil and Natural Gas Corp's (ONGC) (ONGC.BO: Quote, Profile, Research, Stock Buzz), the Economic Times said on Monday.

"The management committee has recommended the proposal and sent the same to the government for approval," the paper quoted an unidentified source as saying.

The paper said ONGC had reported two gas discoveries in the block, located in the Mahanadi basin off the east coast of India, and said another find in December had potential commercial interest.

An ONGC spokesman could not be reached for an immediate comment.

The two firms had signed an initial pact last year, under which ONGC offered Petrobras stakes of 15-40 percent in three deep-water blocks and Petrobras offered stakes of 25-30 percent in three exploration blocks in Brazil.

(Reporting by Hiral Vora; Editing by John Mair)