NEW DELHI – ONGC Videsh Ltd. Wednesday said it has signed a three-year pact with PetroVietnam for long-term cooperation in the oil and gas industry as it seeks to increase investments in Vietnam for exploration and production.
Both state-run companies will explore investments in the petroleum sector, exchange information on the oil and gas industry and expand exploration and production operations including refining, transportation and supply in Vietnam, India and other countries, ONGC Videsh said in a statement.
OVL is an overseas investment unit of state-run Oil & Natural Gas Corp., India’s flagship explorer.
OVL holds a 45% stake in an offshore block, 06.1, in Vietnam. OVL and its other partners, BP PLC and PetroVietnam, have developed the Lan Tay field in the block. Its share of production from the project was 2.249 billion cubic meters of gas and 0.038 million tons of condensate in the last financial year.
It also fully owns Block 128 in Vietnam, where it had to terminate drilling as the rig couldn’t be anchored. OVL plans to restart drilling in 2012, its website showed.
OVL, which produced 9.45 million tons of oil and oil equivalent gas last financial year ended March 31, 2011, has a mandate to source 20 million tons of output from its overseas assets by 2020.
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