ONGC Videsh, PetroVietnam plan exploration off Vietnam
- Business & Finance
India’s ONGC Videsh Limited and Vietnam’s PetroVietnam have signed a Letter of Intent (LOI) on 15th September 2014 to participate in the exploration of oil & gas in the offshore Vietnam
The Letter of Intent (LOI) was signed by Narendra K. Verma, MD & CEO on behalf of ONGC Videsh and Dr Do Van Hau, President & CEO on behalf of PetroVietnam in the presence president of India, Pranab Mukherjee, President of Vietnam H.E. Trifling Tan Sang and Dharmendra Pradhan, Minister of State, Petroleum & Natural Gas, Govt, of India.
The LOI provides for expansion of exploration activities by ONGC Videsh in Vietnam by considering participation in 2-3 additional blocks subject to technical and commercial viability and requisite approvals. In turn, PetroVietnam may consider participation in some of the exploration blocks of ONGC Videsh on mutually agreeable terms subject to due-diligence.
ONGC Videsh forayed into Vietnam as early as 1988, when it bagged the exploration license for Block 06.1. The company got two exploration blocks – Block 127 and Block 128, in 2006. However, Block 127 was relinquished after completing the work programme, and the other block, Block 128 is currently under exploration.
Additionally, ONGC Videsh and PetroVietnam have been engaged in further discussions for possible expansion of cooperation in the hydrocarbon sector of Vietnam.