ONGC Videsh signs Memorandum of Understanding with Petrovietnam
ONGC Videsh on 20th November, 2013 signed Memorandum of Understanding with Petrovietnam (PVN) to promote the joint cooperation in hydrocarbon sector in Vietnam, India and other countries. The MOU signing was witnessed by Prime Minister of India and Secretary General of Communist Party of Vietnam.The MOU was signed by Mr D.K. Sarraf, CEO & MD of ONGC Videsh and Mr. Nguyen Vu Truong Son, Vice President of Petrovietnam. This MOU is in furtherance to the agreement signed between the ONGC Videsh and Petrovietnam on 12th October, 2011. Under the MOU Petrovietnam has offered 5 blocks to ONGC Videsh. ONGC Videsh would assess these blocks and if these are of interest, it would make a proposal to PetroVietnam.
Vietnam is one of the focus countries for ONGC Videsh where it would like to acquire stakes in oil and gas assets depending on techno-commercial viability.
ONGC Videsh is present in E&P sector of Vietnam since 1988 when exploration license for Block 6.1 was acquired.The current non-operating participating interest of OVL in the block is 45% which consists of Lan Tay and Lan Do fields. During the year 2012-13, OVL share of gas production from the fields was 2.1 BCM.Upto 30th September, 2013 OVL’s cumulative investment in the block was USD 415 million.
OVL also holds 100% operating stake in exploration Block-128 with cumulative investment of more than USD 50 million. Earlier, OVL also held 100% operating stake in exploration Block-127 and invested about USD 51 million.
Expressing happiness on signing of MOU, Mr. Sudhir Vasudeva, Chairman noted that it should be seen in the context of long standing strategic partnership with Vietnam. This partnership will help achieve medium to long terms goals set for ONGC Videsh and energy security of India.
OVL 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, OVL participates in 32 projects in 16 countries including Azerbaijan, Brazil, Colombia, Cuba, Iraq, Kazakhstan, Libya, Myanmar, Russia, South Sudan, Sudan, Syria, Venezuela and Vietnam. OVL is currently producing 160 thousand barrels of oil and oil equivalent gas per day and has total oil and gas reserves of about 433 mmtoe as on 31 March 2013.
ONGC’s market capitalisation as on 20th November, 2013, was INR 2,368 billion (US$ 38 billion). It is the highest valued and the highest profit making Government of India enterprise. In the financial year ended 31 March 2013, ONGC Group had produced 58.7 million tonne of oil and oil equivalent gas (mmtoe) (approx. 1.2 mmboe per day), Turnover of INR 165,849 Crore (US$ 30.45 billion) and profit after tax of INR 24,220 Crore (US$ 4.44 billion). ONGC Group had total oil and gas reserves of 1,759 mmtoe as on 31 March 2013.
Note: Turnover and profit data for ONGC presented in US$ for illustrative purposes only and converted from Indian Rupee at the exchange rate of INR 54.45 for US$1 (average RBI reference rate for 2012-13). Market capitalisation of ONGC as on 20th November, 2013 converted at INR 62.56 for US$1 (RBI reference rate of 20th November, 2013).