New Delhi: ONGC Videsh Ltd, the overseas arm of Oil and Natural Gas Corp (ONGC), has for the seventh time sought an extension to explore a Vietnamese oil block in the contested waters of the South China Sea.
Officials said OVL has applied for a two-year extension to explore Block-128, the licence for which was valid till June 15, 2021. While India wants to maintain its strategic interest in the South China Sea, Vietnam wants an Indian firm to counter China's interventions in the contested waters.
OVL had signed a production sharing contract (PSC) with PetroVietnam for deepwater exploratory Block- 128 having an area of 7,058 square kilometers in Offshore PhuKhanh Basin, Vietnam in May 2006. An investment licence was issued to it on June 16, 2006, thereby giving effect to the PSC.
Officials said the company continues to explore for oil and gas in the block that lies in a water depth of 200-2,000 meters. No discovery has yet been made on the block, they said. OVL during the exploration period acquired 3D seismic data, reprocessed 2D seismic data and carried out G&G studies.
But it is yet to drill the one well it had committed as part of the minimum work programme, they said adding further G&G studies are being carried out.
Vietnam on October 29, 2019, had granted a two-year extension from June 16, 2019 to June 15, 2021 and a request for a further two years of extension of Exploration Phase-1 of the PSC was made on March 12 this year.
"We are hoping they will agree to extend the PSC till June 15, 2023," an official said.