The government today authorised ONGC Videsh Ltd's $149.46 million investment plan to further develop its gas field project in Vietnam on the condition that the company arranges funds of its own.
The Cabinet Committee on Economic Affairs authorised ONGC Videsh Ltd, the overseas arm of oil sector PSU ONGC, "to make an additional project investment for further development and exploration of Block 06.1 in Vietnam from the revenue process of the project without any funding from the government."
It, however, said that in the event of any cost overrun, OVL should make a fresh proposal to the empowered Committee of Secretaries.
The company had begun commercial production of gas from the project in January 2003. OVL holds 45 per cent interest in the project, British Petroleum 35 per cent and PetroVietnam the remaining 20 per cent.