Postponement of Production of Crude Oil by OVL From South Chine Sea
The Minister of State for Petroleum and Natural Gas Shri R.P.N. Singh informed the Rajya Sabha in written reply today that efforts of ONGC Videsh Ltd (OVL) to drill a well in Block 128 in Vietnam was not successful due to severe logistic constraints in anchoring the rig on a hard sea bottom at the proposed drilling location. OVL had acquired two offshore exploration Blocks (i.e. 127 & 128) Vietnam as Operator with 100 % Pl under Production Sharing Contracts (PSCs) with effect from 16th June 2006.A well was drilled in Block 127 in 2009 and no hydrocarbon was found. After fulfillment of PSC obligations, the Block was relinquished.
He also said that OVL acquired Block 6.1 in Vietnam offshore in May, 1988 and holds 45% Participating Interest (Pl). OVL’s share of production in financial year 2011-12 was 2.023 Billion Cubic Metre (BCM) of gas and 0.036 MMT of Condensate.
In reply to another query, the Minister explained that sovereignty over areas of the South China Sea is disputed between many countries in the region. India is not a party to this dispute. As two developing countries with growing energy needs, India and Vietnam have been cooperating in the oil and gas sector to enhance their energy security. China, which is a party to the South China Sea dispute, has raised its concerns on India’s hydrocarbon exploration projects in the South China Sea off the coast of Vietnam. Government of India has clearly conveyed that such activity by Indian companies is purely commercial in nature and that sovereignty issues must be resolved peacefully by the countries which are parties to the dispute in accordance with the international law and practice.
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