The latest deal is the furtherance to the agreement signed between both the companies on 12 October, 2011.
As part of the agreement, Petrovietnam has offered five blocks to ONGC, while the assessment of blocks will be undertaken by ONGC and would make a proposal to PetroVietnam, if the blocks are of interest.
In 1988, OVL has acquired exploration license for Block 6.1 in Vietnam, while current non-operating participating interest of the company in the block is 45%, which includes Lan Tay and Lan Do fields.
In 2012-13, OVL’s share of gas production from the fields was 2.1 BCM, and cumulative investment by the company in the block was $415m, as of 30 September 2013.
The company also has 100% operating stake in exploration Block-128 and exploration Block-127 with cumulative investment of about $50m and $51m respectively.
ONGC Videsh chairman Sudhir Vasudeva noted that it should be seen in the context of long standing strategic partnership with Vietnam.
Currently, OVL participates in 32 projects in 16 countries such as Azerbaijan, Brazil, Colombia, Cuba, Iraq, Kazakhstan, Libya, Myanmar, Russia, South Sudan, Sudan, Syria, Venezuela and Vietnam.
At present, the company produces 160 thousand barrels of oil and oil equivalent gas per day, with oil and gas reserves of around 433 mmtoe, as of 31 March 2013.
