Cabinet okays additional investment of $121 mn by ONGC Videsh in Myanmar

The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved additional investment of $121.27 million by ONGC Videsh Ltd for further development of Block A-1 and A-3 blocks in Myanmar.

The CCEA, chaired by Prime Minister Narendra Modi, approved the additional investment for the Shwe oil and gas project in Myanmar blocks, an official statement said.

OVL, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), had picked up a stake in the Shwe Project in Myanmar in 2002. The firm has invested $722 million in the project till March 31, 2019.

The first gas from the Shwe Project was received in July 2013 and plateau production was reached in December 2014. The project has been generating positive cash flows since FY 2014-15, it said.

"The participation of Indian PSUs in oil and gas exploration and development projects in neighbouring countries is aligned with India's Act East Policy, and also part of India's efforts to develop Energy Bridges with its immediate neighbours," it added.