India's OVL Eyes Stake in Chevron's Vietnam Gas project

ONGC Videsh Ltd (OVL), the overseas arm of Indian state-owned Oil and Natural Gas Corp (ONGC), is eyeing a stake in Chevron's $4.3 billion Block B gas project in Vietnam, says news agency Press Trust of India in a report.

Chevron, which holds 42.38% in Blocks B has called for expression of interests from international firms willing to farm-in (or buy stake), sources told the news agency.

Block B has 4 Trillion cubic feet of inplace reserves, of which 63% can be recovered or produced, says Press Trust of India. It can produce up to 490 million cubic feet of gas and 6,000 to 7,000 barrel of condensate per day.

Last week, Vietnam offered OVL five oil and gas blocks in South China Sea on nomination basis.

Sources said OVL feels Vietnam will support its bid for Chevron stake by giving necessary approvals and waiving its first right of refusal. Gazprom of Russia is also interested in the block, adds Press Trust of India.

OVL already has 45% stake in Block 06.1, which produces about 12.8 million standard cubic metres per day of gas and 1,896 barrels per day of condensate.

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