ONGC Videsh Realizes US$ 100 Million from Vietnam Project

ONGC Videsh Ltd. achieved a significant milestone when its gas sales revenue from Block 06.1 Vietnam project crossed US$ 100 million in December 2004. In addition, ONGC-VL has realised about US$ 11 million from condensate sales from this project so far. The project has also passed the planned gas production of 2.377 bcm for the year 2004, the actual for 2004 being 2.591 bcm.

"ONGC-VL had signed the first ever Petroleum Production Sharing Contract (PSC) with PetroVietnam (PV) on 19th May 1988. The exploration efforts resulted in the discovery of Lan Tay and Lan Do gas fields in block 06.1 in late 1992-93. ONGC-VL has a 45% stake in the project now. British Petroleum (BP) 35% and PetroVietnam (PV) 20% are other partners in the project. The commercial production of gas commenced after completion of Phase 1 development on 21st January 2003. ONGC-VL has invested approximately US$ 162 million during the Development Phase so far. The gas produced is sold to Petrovietnam and is used to feed power plants in Phu My area, south east of Ho Chi Minh City.

The project has recently achieved 3 billion cubic meters of cumulative gas production. During this period, the project achieved outstanding reliability, meeting 100 per cent of the customer's gas nominations. The Baria Vung Tau provincial authorities honored ONGC Videsh along with Petro Vietnam, BPEOC & Conoco Philips with "Certificate Of Merit" on 26th August in recognition of the contribution towards economic development of the province in particular and Vietnam in general.

Mr. R.S. Butola, Managing Director (ONGC-VL), stated that the combined effort of the Partners, PetroVietnam, Baria Vung Tau authorities, the Government of Vietnam and the people of Vietnam have made the project a great success.. He said, "We are sure that with such co-operation and support the Vietnam project will have more achievements to its credit, which, we trust shall accelerate the pace of industrial development and economic growth in Vietnam".