AGREEMENT BETWEEN ONGC AND VIETNAM

Vol 3, PW 8 (12 May 99) News in Brief
     

India and Vietnam have reached agreement on the price Vietnam will pay ONGC for gas produced from the Lan Tay and Lan Do fields in Vietnams Nam Con Son basin.

It is understood that Vietnam has asked ONGC not to reveal the price, agreed after months of frustrating negotiation. Bikash Bora, Chairman, ONGC, said only "the gas sales price is in regional parity and provides comfort to both investors and the government of Vietnam".

First production of 3bn cubic metres per day is expected by January 2002 and should be enough to generate 60% of Vietnams electricity. ONGC owns a 55% stake in the concession, with operator BP/Statoil holding the remaining 45%.

An MOU agrees future equity dilution to allow PetroVietnam a 15% stake.