ONGC Videsh signs MoU with Petrovietnam

ONGC Videsh signed Memorandum of Understanding with Petrovietnam (PVN) to promote the joint cooperation in hydrocarbon sector in Vietnam, India and other countries. The MoU signing was witnessed by Prime Minister of India and Secretary General of Communist Party of Vietnam. The MoU was signed by D.K. Sarraf, CEO and MD of ONGC Videsh and Nguyen Vu Truong Son, Vice President of Petrovietnam. This MOU is in furtherance to the agreement signed between the ONGC Videsh and Petrovietnam on 12th October, 2011. Under the MoU, Petrovietnam has offered 5 blocks to ONGC Videsh. ONGC Videsh would assess these blocks and if these are of interest, it would make a proposal to PetroVietnam.Vietnam is one of the focus countries for ONGC Videsh where it would like to acquire stakes in oil and gas assets depending on techno-commercial viability.ONGC Videsh is present in E&P sector of Vietnam since 1988 when exploration license for Block 6.1 was acquired.The current non-operating participating interest of OVL in the block is 45% which consists of Lan Tay and Lan Do fields. During the year 2012-13, OVL share of gas production from the fields was 2.1 BCM.Upto 30th September, 2013 OVL’s cumulative investment in the block was USD 415 million.OVL also holds 100 per cent operating stake in exploration Block-128 with cumulative investment of more than USD 50 million. Earlier, OVL also held 100% operating stake in exploration Block-127 and invested about USD 51 million.Commenting on the occasion Sudhir Vasudeva, Chairman ONGC noted that it should be seen in the context of long standing strategic partnership with Vietnam. This partnership will help achieve medium to long terms goals set for ONGC Videsh and energy security of India.