ONGC Videsh (OVL), the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), is awaiting government approval for investing an additional $65.67 million in an hydrocarbon block in Vietnam.
In 1988, OVL acquired exploration license for Block 06.1, in which it holds 45 per cent stake. TNK Vietnam BV is the operator with 35 per cent stake and the remaining 20 per cent is held by Vietnam’s state-owned Petro Vietnam.
All the joint venture partners decided to invest $145.94 million in the block and of this OVL was to invest $65.67 million. The additional investment is for developing Lan Do gas field in the block.
Block 06.1 is an offshore Block located 370 km south-east of Vung Tau on the southern Vietnamese coast with an area of 955 sq km.
The joint venture partners developed Lan Tay field in the block and the field started commercial production in January, 2003. OVL’s share of production from the project was 2.023 billion cubic metre of gas and 0.036 million ton of condensate during 2011-12, as compared to 2.249 BCM of gas and 0.038 million ton of condensate during 2010-11. OVL’s share of the expenditure in developing the block was about $342.78 million till March 31, 2012.
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