Tension between BP and ONGC in Vietnam

Vol 3, PW 22 (24 Nov 99) News in Brief

Never the best of friends, BP and ONGC appear set for another clash in Vietnam.

The row centres on the selection of a service contractor to undertake the detailed engineering of the Lan Tay and Lan Do gasfields in Vietnams Nam Con Son basin, where an alliance of BP/Statoil is operator, but ONGC holds the largest stake in the consortium. A source at ONGC tells this report BP wants Brown & Root to undertake the detailed engineering of the 2 trillion cubic feet gasfield.

Brown & Root earlier carried out the basic engineering. For its part, ONGC is keen to show off its own technical prowess and is lobbying hard to have its technical division undertake the contract.

BP, however, refuses to budge.