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OVL plans to exit South China Sea block

OVL plans to exit South China Sea block
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According to source-based information, ONGC Videsh plans to exit the hydrocarbon block offered by Vietnam to it in the maritime region of South China Sea as it found that the bed of the block was very difficult.

ONGC Videsh, the overseas arm of ONGC, feels that the cost of operating the block is higher than the benefits and so it is not conducting operation there. However, Vietnam has been requesting OVL to continue its efforts.

The preliminary assessment of the block offered over two years ago had shown some elements of gas and oil. The exploration block was a cause of tiff between India and China about a year ago with Beijing protesting as it lays claim over entire South China Sea.

India has maintained there should be freedom in terms of international rules for navigation and exploitation of resources.

It may be recalled that India’s Naval Chief Admiral DK Joshi said the navy could send even its troops to South China Sea to protect its interests.

This comment has not gone down well with the External Affairs Ministry. However, the MEA is not making an issue out of it, although it wants restraint by chiefs of forces.

Joshi had made the comments at a time when National Security Adviser Shivshanker Menon, India’s Special Representative, was in Beijing hold talks on the boundary question with his counterpart Dai Bingguo.

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