OVL signs co-operation agreement with PetroVietnam

ONGC Videsh Ltd, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), today signed an agreement with Vietnam's national oil company PetroVietnam to jointly explore for oil and gas in the South-East nation and third countries.

"OVL and Vietnam Oil and Gas Group (PetroVietnam) signed an agreement of co-operation in the presence of visiting President of the Socialist Republic of Vietnam Truong Tan Sang and Prime Minister Manmohan Singh," the company said in a press statement here.

The agreement is intended for developing long-term cooperation in the oil and gas industry and shall be in force for three years.

The agreement was signed by OVL Managing Director D K Sarraf and PetroVietnam Chairman Phung Dinh Thuc.

The two firms will cooperate on oil and gas exploration, refining, transportation and supply projects in Vietnam, India and third countries.

"Some of the key areas in which both companies are desirous to cooperate are related to the exchange of information on the petroleum industry, exchange of working visits of authorities and specialists in various domains of the petroleum industry, new investments, expansion and operations of oil and gas" ventures, the statement said.

The cooperation between OVL and PetroVietnam dates back to the 1980s, with the signing of a Production Sharing Contract between Hydrocarbon India Ltd  (renamed later as OVL) and PetroVietnam on May 19, 1988 for Block 06.1.

Block 06.1 contributes about 50% of the gas requirement for the domestic sector.

In 2006, OVL also secured the rights to explore for oil and gas in offshore Blocks 127 and 128 in the Phu Kanh Basin in Vietnam.

"Discussions have been held at high levels to further expand the cooperation not only in Vietnam and India, but also in third countries," the statement added.