PetroVietnam, ONGC Videsh sign oil exploration pact

Pact will allow activities in Vietnam, India as well as in a third country

ONGC Videsh has signed a memorandum of understanding PetroVietnam (PVN) to promote the joint cooperation in hydrocarbon sector in Vietnam, India and other countries.

This comes at a time when Vietnam is offering India fresh oil and natural gas blocks in the South China Sea.  The MoU was signed in presence of Prime Minister Manmohan Singh and Secretary General of Communist Party of Vietnam.

This MOU is in furtherance to the agreement signed between the ONGC Videsh and Petrovietnam on 12th October, 2011. Under the MOU, Petrovietnam has offered 5 blocks to ONGC Videsh. “ONGC Videsh would assess these blocks and if these are of interest, it would make a proposal to PetroVietnam,” the company said in a statement today.   

ONGC Videsh is present in E&P sector of Vietnam since 1988 when exploration license for Block 6.1 was acquired.The current non-operating participating interest of OVL in the block is 45%  which consists of Lan Tay and Lan Do fields. During the year 2012-13, OVL share of gas production from the fields was 2.1 billion cubic metre. Up to September 30 this year OVL’s cumulative investment in the block was $ 415 million.

OVL also holds 100% operating stake in exploration Block-128 with cumulative investment of more than $50 million. Earlier, OVL also held 100% operating stake in exploration Block-127 and invested about $51 million.