ONGC Videsh receives a three-year extension to explore the South China Sea

21 Aug 2023 , 11:22 AM

The parent company of the corporation, ONGC, said that India’s premier international company, ONGC Videsh Ltd (OVL), has been granted another three-year extension to continue exploring for oil and gas in a Vietnamese block in the disputed South China Sea.

For OVL, the overseas division of the publicly traded Oil and Natural Gas Corporation (ONGC), this is the eighth extension. The extension for oil and gas exploration was until June 15, 2023, and PTI on August 13 reported that the corporation was negotiating a further three-year extension with Vietnamese officials.

OVL ‘secures extension of three further years to explore in Block 128 of the South China Sea! As ONGC Videsh continues its exploratory voyage with its eighth extension through June 15, 2026, India’s strategic commitment is still strong, according to an announcement made by ONGC on the social messaging service X, formerly known as Twitter.

The company had requested a three-year extension of the exploration phase-1 in submission to regulator PVN.

ONGC stated, ‘We are embracing challenges, protecting interests, & fostering partnerships.’

In the 17 years, it has been exploring the area, the company has not yet discovered any economically recoverable oil and gas reserves there, but it has remained present because of India’s strategic interest in the South China Sea.

Vietnam wants the Indian company as well to oppose Chinese interventions in the disputed waters. For the deepwater exploration of Block 128 in Vietnam’s offshore Phu Khanh Basin, which covers an area of 7,058 square kilometers, OVL and PetroVietnam signed a production sharing contract (PSC) in May 2006.

On June 16, 2006, it received an investment license, making the PSC effective. The company successfully completed the drilling of the committed one well, as well as the licencing requirements of shooting 3D seismic data and reprocessing 2D seismic data.

Officials stated to Business Standard that in order to complete a portion of the minimum work program for the phase-1 of the exploration period, OVL gathered 3D seismic data and reprocessed 2D seismic data.

For feedback and suggestions, write to us at [e-mail]