ONGC Videsh (OVL), the overseas arm of state-run Oil and Natural Gas Corp, Tuesday signed an agreement for joint exploration in PetroVietnam's two blocks in the South China Sea.
"OVL signed a Heads of Agreement (HOA) with PetroVietnam Exploration Production Corp (PVEP), a wholly owned subsidy of Vietnam Oil and Gas Group (PetroVietnam), for mutual cooperation for exploration in Blocks 102/10 and 106/10 of PVEP and Block 128 of OVL in offshore Vietnam, subject to due diligence and negotiations on terms of participation," ONGC said in a statement.
The HOA was signed by OVL managing director Narendra K. Verma and PVEP president Do Van Khanh.
"ONGC also signed a Memorandum of Understanding (MoU) with PVEP for mutual cooperation for exploration in the NELP Blocks of ONGC in Andaman and Cauvery Basins, subject to due diligence and negotiations on terms of participation," the statement added.
The MoU was signed by ONGC chairman and managing director Dinesh K. Sarraf and Khanh.
Both the MoU and the HOA were exchanged in the presence of visiting Vietnamese Prime Minister Nguyen Tan Dung and Prime Minister Narendra Modi.
OVL forayed into Vietnam as early as 1988, when it was awarded the exploration license for Block 06.1 that is producing natural gas, the statement said.
The company also got exploration Blocks 127 and 128 in 2006. Block 127 was relinquished after completing the work programme. Block 128 is currently under exploration, it added.