OVL signs cooperation agreement with PetroVietnam [Nov 2011]

OVL signs cooperation agreement with PetroVietnam
ONGC Videsh Ltd, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC) signed an agreement with Vietnam’s national oil company PetroVietnam to jointly explore for oil and gas in the South-East nation and third countries. The agreement is intended for developing long-term cooperation in the oil and gas industry and shall be in force for three years. The two firms will cooperate on oil and gas exploration, refining, transportation and supply projects in Vietnam, India and third countries.
Both the companies, over the years, have made significant growth in the hydrocarbon sector within their respective countries and outside. “Some of the key areas in which both companies are desirous to cooperate are related to the exchange of information on the petroleum industry, exchange of working visits of authorities and specialists in various domains of the petroleum industry, new investments, expansion and operations of oil and gas ventures”, the statement highlights.
The cooperation between OVL and PetroVietnam dates back to the 1980s, with the signing of a Production Sharing Contract between Hydrocarbon India Ltd (renamed later as OVL) and PetroVietnam on May 19, 1988 for Block 06.1. Block 06.1 contributes about 50 per cent of the gas requirement for the domestic sector. Significantly, in 2006, OVL also secured the rights to explore for oil and gas in offshore Blocks 127 and 128 in the Phu Kanh Basin in Vietnam.

5