CCEA to consider OVL's addl investment in Vietnam block tom
New Delhi: The Cabinet Committee on Economic Affairs (CCEA) is likely to consider a proposal tomorrow to allow ONGC Videsh Ltd to invest an additional USD 65.67 million in a gas producing block in Vietnam.
OVL, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), and its partners are to invest USD 145.94 million in the block. The share of the Indian firm is USD 65.67 million, official sources said.
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 Exploration License for Block 06.1 was acquired by OVL in 1988. OVL holds 45 percent in the block.
TNK Vietnam BV is the operator with 35 percent stake in the remaining 20 percent is with Vietnam's state-owned Petro Vietnam.
Lan Tay field in the Block has been developed and the field started commercial production in January, 2003. OVL's share of production from the project was 2.023 billion cubic meters of gas and 0.036 million tons of condensate during 2011-12, as compared to 2.249 BCM of gas and 0.038 million tons of condensate during 2010-11.
The sources said OVL's share of the expenditure in developing the block was about USD 342.78 million till March 31, 2012 and the additional investment is for developing Lan Do gas field in the Block.