ONGC Videsh, the overseas arm of state-owned Oil and Natural Gas Corporation, is seeking to regain operatorship of offshore gas block in Vietnam, which started gas production last month.
"The field was discovered by OVL in the late 1980s. But due to the foreign exchange crunch faced by India, British Petroleum and Statoil were given stakes in it during 1992. We are now trying to regain the operatorship of the block from BP," company sources said.
Soon after signing the farm out agreement and assignment agreement on October 1, 1992, OVL had requested PetroVietnam to approve assignment of operatorship to British Petroleum till the end of exploration Phase-II or as long as BP/Statoil undertake work at their sole cost and risk, whichever is earlier.
The Vietnamese State Committee for Cooperation and Investment, while according its approval for assigning 45 per cent interest to BP/Statoil, approved assignment of operatorship to BP up to the termination of the license.
"OVL has tried its best to regain operatorship at the end of exploration Phase-II through letters, personal meetings with PV, SCCI and other government authorities but so far PV has not issued amendment to SCCI approval dated October 9, 1992, and has reiterated that all partners must mutually agree on the issue of operatorship," sources said.
OVL, which is the largest share holder with 45 per cent stake in the Nam Com Son project, is expected to get $60 million in revenue annually as its share in gas sales.