OVL inks contracts for Vietnam blocks | india | Hindustan Times
Today in New Delhi, India
Nov 19, 2017-Sunday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

OVL inks contracts for Vietnam blocks

OVL has signed the production sharing contracts with PetroVietnam for two offshore blocks in Phu Khanh Basin.

india Updated: Jun 01, 2006 12:44 IST

ONGC Videsh Ltd, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), has signed the production sharing contracts with Vietnam Oil and Gas Corp (PetroVietnam) for two offshore blocks in Phu Khanh Basin.

OVL would be operator of Block 127 and 128 and have a 100 per cent participating interest, company officials said.

In the event of a commercial discovery, PetroVietnam through a wholly owned affiliate has the option of obtaining up to a 20 per cent participating interest in the Blocks.

The contracts were signed by OVL Managing Director R S Butola and PetroVietnam President and CEO Tran Ngoc Canh.

Blocks 127 and 128 cover approximately 9,246 sq.Km and 7,058 sq.Km. Area respectively and lie alongside the eastern coastline of Vietnam, northeast of Ho Chi Minh City.

The exploratory phase of both the contracts is seven years, with a firm minimum work programme during the first three years that includes the acquisition of new 3-D seismic data and the drilling of two exploratory wells in Block 127 and one exploratory well in Block 128. This would be followed by two optional two-year periods during which a well has to be drilled in order to retain the acreage, officials said.

OVL was selected as the successful bidder in the global competitive bidding for nine offshore exploration blocks in the Vietnam 2004 Licensing Round. OVL has been awarded both the blocks it had bid for.

The company currently partners British Petroleum in the Lan tay and Lan Do gas field in Block 6. OVL has 45 per cent participating interest, BP 35 per cent and PetroVietnam 20 per cent.