India moves to clear $230m investment in Vietnamese gasfield

Vol 4, PW 2 (01 Mar 00) News in Brief

Indian oil secretary Subbaram Narayan is leading a 5-man panel set up to push through a $230m ONGC investment in a Vietnamese gasfield.

ONGC Videsh (OVL) holds 45% in an alliance with BP (16.57%), Statoil of Norway (13.33%) and Petrovietnam (15%) in the Lan Tay and Lan Do fields in Block 06.1 of the Nam Con Soy basin, which holds 58bn cubic metres of gas reserves. On 4th February, consortium partners signed an agreement paving the way for a development programme but several financial obstacles remain.

On 16th February, a British minister visiting Hanoi said Vietnam is showing a new willingness to resolve problems due to a 2002 deadline for first production. Vietnam has agreed to pay the consortium $1.88 per million British Thermal Unit (BTU).