OVL gets 3 more years for exploring Vietnamese oil block in South China Sea
New Delhi: State-run ONGC Videsh Ltd. has been allowed an extension to explore oil and gas for three more years till 15 June 2026 in a Vietnamese block in the South China Sea. "Navratna @ongcvideshltd secures extension of 3 more years to explore in South China Sea's Block 128! #India's strategic commitment stays strong as ONGC Videsh continues its exploration journey with its 8th extension till 15 June 2026.
We are embracing challenges, safeguarding interests & fostering partnerships," parent ONGC said in tweet. The seventh extension was till 15 June 2023. OVL had signed a production sharing contract with PetroVietnam for a deepwater exploratory block in offshore PhuKhanh Basin, Vietnam, in May 2006.
Vietnam's ministry of petroleum & industries had issued the investment licence in June 2016. In its annual report for FY23, the company had said that it acquired 3D seismic data and reprocessed 2D seismic data to fulfil part of the minimum work programme of phase-1 of exploration period. Petroleum system modelling studies have also been carried out based on data provided by PetroVietnam.
In 1988, OVL had entered Vietnam after it secured exploration licence for Block 06.1, located in the Nam Con Son basin. The ONGC subisdiary owns a 45% stake in Block 06.1 and its share of condensate and oil equivalent gas production from the block was at 0.693 million tonne during fiscal 2022-23. The production sharing contract for Block 06.1 was valid till 18 May 2023, which has been extended for another 16 years.
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