Friday, October 30, 2009

Approval for participation and investment in the upstream and offshore midstream sections of the Blocks A-1 and A-3 in Myanmar Natural Gas Development Project by ONGC Videsh Ltd.
  
The Cabinet Committee on Economic Affairs today 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. and authorized OVL to make investments up to an aggregate amount of USD 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 finalized 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 operator Daewoo the likely expenditure till March 2010 is about USD 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 USD 173.85 million.

Background:

OVL, a wholly owned subsidiary of ONGC has been active in Exploration and Production (E&P) activities in Myanmar since 2002 with its entry in Block A-1.

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