ONGC Videsh Pens Pact with PetroVietnam

ONGC Videsh Limited (OVL) and Vietnam Oil and Gas Group (PetroVietnam), National Oil Company (NOC) of Socialist Republic of Vietnam signed an agreement of cooperation on October 12, 2011 in the presence of visiting President of Socialist Republic of Vietnam, H.E. Mr. Truong Tan Sang and the Honourable Prime Minister of India, Dr. Manmohan Singh, in New Delhi.

The Agreement was signed by Dr. Phung Dinh Thuc, Chairman of the Board of Directors, PetroVietnam and Mr. D.K. Sarraf, CEO and Managing Director, OVL.

The agreement is intended for developing long term cooperation in oil and gas industry and shall be in force and effect for three years. Some of the key areas in which both the 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 exploration and production including refining, transportation and supply in Vietnam, India, and third countries according to the laws and regulations of their countries.

The cooperation between OVL and PetroVietnam dates back to 1980s which culminated in signing of the Production Sharing Contract between Hydrocarbon India Ltd., (renamed later as ONGC Videsh Limited) and PetroVietnam on May 19, 1988 for Block 06.1. The development of the gas fields in the block is of national and strategic importance to Vietnam. This contributes about 50% of the gas requirement for the domestic sector.

Both the companies have cordial relations which paved the way for the award of two exploration blocks 127 and 128 in Phu Kanh basin in Vietnam to OVL during June 2006 through regular bidding process.

Both the companies, over the years, have made significant growth in the hydrocarbon sector within their respective countries and outside. Discussions have been held at high levels to further expand the cooperation not only in Vietnam and India but also in third countries.

Vietnam’s upstream oil and gas sector has attracted a host of International Oil Companies (IOC) and Asian NOCs in the recent past. OVL is keen to enhance its investments in Vietnam offshore for exploration and production of oil and gas.