Vietnam offers 6 oil and gas blocks to OVL

Vietnam has offered to give ONGC Videsh Ltd five offshore oil and gas exploration areas in South China Sea and its Kossor block in Uzbekistan without bidding, the Indian company said today.
The five blocks offered on nomination basis lie outside the territory claimed by China in the South China Sea.
Vietnam's national oil company PetroVietnam offered Block 17, 41 and 43 while PetroVietnam Exploration Corporation offered blocks 10&11-1 and 102&106/10 and the Kossor block it has in Uzbekistan as Hanoi looks to counter China's influence in the region.
OVL, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), in a statement said, it yesterday signed a memorandum of understanding with PetroVietnam for joint cooperation in hydrocarbon sector in Vietnam, India and other countries.

"Under the MOU, PetroVietnam has offered 5 blocks (in Vietnam) to ONGC Videsh. ONGC Videsh would assess these blocks and if these are of interest, it would make a proposal to PetroVietnam," it said.
"OVL will study the data on the blocks and has the option to pick and choose from the blocks. It can even take all of them and also has to option not to take any of them," a top official said.

If OVL decides to take any or all of the blocks, a Production Sharing Contract (PSC) will be signed.
OVL will carry out evaluation of blocks 17, 41 and 43 on an exclusive basis in next three months. "In the event any block is of interest to OVL, it shall provide PetroVietnam with its proposal for entering into a PSC for such block(s) and to negotiate PSC agreements under the Petroleum Law of Vietnam," he said.

For block 10&11-1 and 102&106/10 and Kossor block in Uzbekistan, OVL shall carry out the evaluation and discuss with PetroVietnam Exploration Corp on terms and conditions for contract farm-in.