ONGC Videsh (OVL), has signed the production sharing contracts with Vietnam oil and gas corp (PetroVietnam) for two offshore blocks in Phu Khanh basin.OVL would be operator of block 127 and 128 and have a 100% participating interest, OVL officials said.In the event of a commercial discovery, PetroVietnam through a wholly-owned affiliate has the option of obtaining up to a 20% participating interest in the blocks.The contracts were signed by OVL managing director R S Butola and PetroVietnam president and CEO Tran Ngoc Canh.Blocks 127 and 128 cover approximately 9,246 sq km and 7,058 sq km areas respectively and lie alongside the eastern coastline of Vietnam, northeast of Ho Chi Minh city.The exploratory phase of both the contracts is seven years, with a firm minimum work programme during the first three years that includes the acquisition of new 3-D seismic data and the drilling of two exploratory wells in block 127 and one exploratory well in block 128. This would be followed by two optional two-year periods during which a well has to be drilled in order to retain the acreage, OVL officials said.OVL was selected as the successful bidder in the global competitive bidding for 9 offshore exploration blocks in the vietnam 2004 licensing round. OVL has been awarded both the blocks it had bid for.The company currently partners British Petroleum in the Lan Tay and Lan Do gas field in block 6. OVL has 45% participating interest, BP 35% and PetroVietnam 20%.
