Vietnam offers 2 more blocks to OVL - Financial Express
In a boost to ONGC Videsh (OVL), the overseas subsidiary of oil and gas major ONGC, Vietnam has offered two more offshore blocks to the Indian explorer for equity participation. Earlier, the South Asian nation had already offered five offshore blocks to OVL.
According to sources, out of the total seven offshore blocks offered by the foreign country, OVL is interested in investing in two-three of them.
OVL and Petrovietnam will sign a Letter of Intent (LoI) on Monday when President Pranab Mukherjee travels to the country.
“OVL has been offered two additional blocks by Petrovietnam. In fact, Petrovietnam had offered offshore blocs to OVL earlier for which feasibility studies are going on,” Anil Wadhwa, secretary, East, ministry of external affairs, told FE.
Vietnam is important for India especially for our energy needs, Wadhwa added.
Petroleum minister Dharmendra Pradhan and top officials from OVL are also part of the Indian delegation visiting Vietnam starting Monday. When contacted, N K Verma, managing director of OVL, told FE that the explorer is examining the prospects offered by Petrovietnam.
Interestingly, the blocks are situated in troubled waters between China and Vietnam. Both countries hold claims over the South China Sea and its adjoining islands. Tensions have flared between them over the Spratly and Paracel Islands. However, OVL continues to be present in the tensed waters.
OVL strengthening its presence in the South China Sea along with Vietnamese Petrovietnam is seen by industry experts as Prime Minister Narendra Modi's vision for a resurgent India with a strong presence in this part of the globe.
OVL forayed to Vietnam as early as 1988, when it bagged the exploration license for Block 06.1. The ONGC-arm got another block 127 in 2006, however, as there was no hydrocarbon presence, the acreage was relinquished. Another block 128 was also brought under OVL's umbrella in 2006, which is under exploration.
ONGC Videsh’s oil and gas operations produced 8.36 MMT of oil and oil equivalent gas in 2013-14.
Its overseas cumulative investment up to March 31, 2014, has crossed $22 billion. ONGC Videsh has stake in 33 oil and gas projects in 16 countries, including 13 producing assets.
In a boost to ONGC Videsh (OVL), the overseas subsidiary of oil and gas major ONGC, Vietnam has offered two more offshore blocks to the Indian explorer for equity participation. Earlier, the South Asian nation had already offered five offshore blocks to OVL.
According to sources, out of the total seven offshore blocks offered by the foreign country, OVL is interested in investing in two-three of them.
OVL and Petrovietnam will sign a Letter of Intent (LoI) on Monday when President Pranab Mukherjee travels to the country.
“OVL has been offered two additional blocks by Petrovietnam. In fact, Petrovietnam had offered offshore blocs to OVL earlier for which feasibility studies are going on,” Anil Wadhwa, secretary, East, ministry of external affairs, told FE.
Vietnam is important for India especially for our energy needs, Wadhwa added.
Petroleum minister Dharmendra Pradhan and top officials from OVL are also part of the Indian delegation visiting Vietnam starting Monday. When contacted, N K Verma, managing director of OVL, told FE that the explorer is examining the prospects offered by Petrovietnam.
Interestingly, the blocks are situated in troubled waters between China and Vietnam. Both countries hold claims over the South China Sea and its adjoining islands. Tensions have flared between them over the Spratly and Paracel Islands. However, OVL continues to be present in the tensed waters.
OVL strengthening its presence in the South China Sea along with Vietnamese Petrovietnam is seen by industry experts as Prime Minister Narendra Modi's vision for a resurgent India with a strong presence in this part of the globe.
OVL forayed to Vietnam as early as 1988, when it bagged the exploration license for Block 06.1. The ONGC-arm got another block 127 in 2006, however, as there was no hydrocarbon presence, the acreage was relinquished. Another block 128 was also brought under OVL's umbrella in 2006, which is under exploration.
ONGC Videsh’s oil and gas operations produced 8.36 MMT of oil and oil equivalent gas in 2013-14.
Its overseas cumulative investment up to March 31, 2014, has crossed $22 billion. ONGC Videsh has stake in 33 oil and gas projects in 16 countries, including 13 producing assets.
