New Delhi: ONGC Videsh (OVL), the wholly owned subsidiary of Oil and Natural Gas Corporation (ONGC), has signed the production sharing contract with Vietnam Oil and Gas Corporation (Petro-Vietnam) for blocks 127 and 128 offshore Vietnam in the Phu Khanh Basin.
OVL, which is working in Vietnam for the past eighteen years, will be the operator of the block and will have a 100 per cent participating interest.
In the event of a commercial discovery, Petro-Vietnam through a wholly owned affiliate has the option of obtaining up to a 20 per cent participating interest in the blocks, said an ONGC release issued on Friday.
Blocks 127 and 128 cover about 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 for a period of seven years, with a firm minimum work programme during the first three years.
This 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.
The exploratory phase is followed by two optional two-year periods during which a well has to be drilled in order to retain the acreage.
OVL was selected as the successful bidder in the global competitive bids for nine offshore exploration blocks in Vietnam 2004 licensing round. OVL has been awarded both the blocks it had bid for.
The contract was signed recently in Hanoi by the Vice Minister of Industry of Vietnam Do Huu Mao and witnessed by the Indian Ambassador to Vietnam N Ravi.
R S Butola-Managing Director OVL and Dr Tran Ngoc Canh, President and CEO PetroVietnam signed the contract.
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