OVL to abandon second block off Vietnam coast
16 May 2012 6:16 AM GMT
ONGC Videsh Ltd, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), has decided to abandon a second block off the Vietnam coast in the South China Sea due to logistic constraints.
China claims sovereignty over most of the South China sea where OVL’s Block 127 and 128 were located and had warned the Indian arm from drilling in the region.
'A well was drilled in Block 127 in 2009 and no hydrocarbon was found. After the fulfilment of [contractual obligations], the Block was relinquished,’ Minister of State for Petroleum and Natural Gas R P N Singh said in a written reply to a question in the Rajya Sabha.
'Efforts to drill a well in Block 128 was not successful due to severe logistic constraints in anchoring the rig on a hard sea bottom at the proposed drilling location.
'Considering previous experience and perceived risk-reward analysis, Block 128 was found to be techno-commercially not viable and the Board of OVL has decided to relinquish the said block,’ he said.
Cnooc Ltd, China’s largest offshore oil producer, began its first deep-water drilling last week in the South China Sea, parts of which are also claimed by Vietnam, Taiwan and the Philippines.
'Sovereignty over areas of the South China Sea is disputed between many countries in the region. India is not a party to this dispute,’ Singh said.
China, he said, had raised concerns on India’s oil and gas exploration projects in the South China Sea off the coast of Vietnam on more occasions than one.
'The Government of India has clearly conveyed that such activity by Indian companies is purely commercial in nature and that sovereignty issues must be resolved peacefully by the countries which are parties to the dispute in accordance with the international law and practice,’ he added.
OVL continues to own 45 per cent in Vietnam’s offshore block 6.1. 'OVL’s share of production in fiscal 2011-12 was 2.023 billion cubic metres of gas and 0.036 million tonnes of condensate,’ Singh said.
China claims sovereignty over most of the South China sea where OVL’s Block 127 and 128 were located and had warned the Indian arm from drilling in the region.
'A well was drilled in Block 127 in 2009 and no hydrocarbon was found. After the fulfilment of [contractual obligations], the Block was relinquished,’ Minister of State for Petroleum and Natural Gas R P N Singh said in a written reply to a question in the Rajya Sabha.
'Efforts to drill a well in Block 128 was not successful due to severe logistic constraints in anchoring the rig on a hard sea bottom at the proposed drilling location.
'Considering previous experience and perceived risk-reward analysis, Block 128 was found to be techno-commercially not viable and the Board of OVL has decided to relinquish the said block,’ he said.
Cnooc Ltd, China’s largest offshore oil producer, began its first deep-water drilling last week in the South China Sea, parts of which are also claimed by Vietnam, Taiwan and the Philippines.
'Sovereignty over areas of the South China Sea is disputed between many countries in the region. India is not a party to this dispute,’ Singh said.
China, he said, had raised concerns on India’s oil and gas exploration projects in the South China Sea off the coast of Vietnam on more occasions than one.
'The Government of India has clearly conveyed that such activity by Indian companies is purely commercial in nature and that sovereignty issues must be resolved peacefully by the countries which are parties to the dispute in accordance with the international law and practice,’ he added.
OVL continues to own 45 per cent in Vietnam’s offshore block 6.1. 'OVL’s share of production in fiscal 2011-12 was 2.023 billion cubic metres of gas and 0.036 million tonnes of condensate,’ Singh said.
Next Story
