ONGC Videsh signs Letter of Intent with PetroVietnam

ONGC Videsh Limited and PetroVietnam, the major oil producing state owned company of Vietnam signed a Letter of Intent (LOI) on September 15th to participate in the exploration of oil & gas in the offshore Vietnam.

The Letter of Intent (LOI) was signed by Mr. Narendra K. Verma, MD & CEO on behalf of ONGC Videsh and Dr Do Van Hau, President & CEO on behalf of PetroVietnam.

The LOI provides for expansion of exploration activities by ONGC Videsh in Vietnam by considering participation in 2-3 additional blocks subject to technical and commercial viability and requisite approvals. In turn, PetroVietnam may consider participation in some of the exploration blocks of ONGC Videsh on mutually agreeable terms subject to due-diligence.

ONGC Videsh forayed into Vietnam as early as 1988, when it bagged the exploration license for Block 06.1. The company got two exploration blocks – Block 127 and Block 128, in 2006. However, Block 127 was relinquished after completing the work programme, and the other block, Block 128 is currently under exploration. Additionally, ONGC Videsh and PetroVietnam have been engaged in further discussions for possible expansion of cooperation in hydrocarbon sector of Vietnam.

ONGC Videsh is a wholly owned subsidiary of Oil and Natural Gas Corporation Limited (ONGC), the National Oil Company of India, and is India's largest international oil and gas E&P Company. At present, ONGC Videsh has participation in 35 projects in 16 countries.

ONGC's market capitalisation as on 12th September 2014 was INR 3667 billion (US$ 60 billion). The Gross Revenue was INR 1744.7 billion (US$ 29.46 billion) and total oil and gas reserves were 2,004 mmtoe as on 31st March 2014.