OVL to participate in Blocks A-1 & A-3 sections
The Cabinet Committee on Economic Affairs has approved participation by ONGC Videsh Ltd (OVL) in the Upstream and Offshore Midstream sections of the Blocks A-1 and A-3, Myanmar Natural Gas Development Project by ONGC Videsh Ltd.
OVL is now authorised to make investments up to an aggregate amount of US$ 173.85 million in Blocks A-1 and A-3 by OVL from its own resources and/or by borrowings from the domestic and/or international markets until the Field Development Plan (FDP) is finalised and a comprehensive proposal for the investment is approved by Government.
The investment is expected to provide additional reserve accretion of hydrocarbons and facilitate production and marketing of Natural Gas from the Blocks A-1 and A-3 having participating interest of OVL and GAIL.
As per the operator (Daewoo) the likely expenditure till March 2010 is about US$ 869.25 million in respect of Block A-1, Block A-3 and Offshore Midstream PIPECO-I. Thus, OVL’s share of expenditure at 20% shall be US$ 173.85 million.
Background: OVL, a wholly owned subsidiary of ONGC has been active in Exploration & Production (E&P) activities in Myanmar since 2002 with its entry in Block A-1.