The government today permitted ONGC Videsh (OVL), the overseas arm of state-run Oil and Natural Gas Corp (ONGC), to invest about $174 million more in two gas blocks off Myanmar.
The Cabinet Committee on Economic Affairs (CCEA) approved OVL's share of investment of $173.85 million in prolific gas blocks A-1 and A-3 in the Bay of Bengal, an official statement said.
OVL holds 20 per cent interest in the blocks and the investment is for developing the gas reserves found in the blocks. The company would meet the investment requirement from its own resources and/or borrowings.
South Korea's Daewoo is the operator of the blocks where state-run gas utility GAIL India also holds an additional 10 per cent stake.
"The investment is expected to provide additional reserve accretion of hydrocarbons and facilitate production and marketing of natural gas from the blocks A-1 and A-3 having participating interest of OVL and GAIL," it said.
As per operator Daewoo, the likely expenditure till March 2010 is about $869.25 million in the two blocks. Of this, OVL's share of expenditure at 20 per cent shall be $173.85 million.
