India's OVL Gets Two Oil, Gas Blocks Offshore Bangladesh

ONGC Videsh (OVL), the overseas arm of India's state owned Oil and Natural Gas Corporation (ONGC), signed Production Sharing Contract (PSC) for two shallow water oil and gas exploration blocks SS-09 & SS-04 in waters of Bangladesh, the company said Monday.

OVL along with Oil India Limited (OIL) formed a consortium (50:50) and participated in the Bangladesh Offshore Bidding Round 2012, launched by Bangladesh Government during December 2012.

“The consortium was officially notified as the winner of two shallow water blocks SS-09 & SS-04 on 20th August 2013. Subsequently, the Production Sharing Contract (PSC) was discussed and initialed on 19th September, 2013 and the Government of Bangladesh approved the award of the blocks to OVL/OIL consortium on 3rd December, 2013,” the company said.

According to a report in local Bangladesh newspaper The Daily Star, OVL has planned an investment of $144.8 million in partnership with Bapex and Oil India.

Until the recovery of its investment, OVL will get 55 percent of the explored resources and the rest will be shared between Petrobangla and OVL, the newspaper reported. Petrobangla will get between 70 and 90 percent of the oil and condensate and between 60 and 85 percent of the gas.

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