New Delhi, Feb 18 (Calcutta Tube) The Indian government has approved the participation of ONGC Videsh and GAIL in the construction of a Chinese pipeline and also make additional investment of over $1.3 billion (Rs.6,008 crore) in the development of Myanmarese hydrocarbon blocks.
The Cabinet Committee on Economic Affairs Thursday approved ONGC’s overseas arm, ONGC Videsh Ltd (OVL)’s investing $167.84 million (Rs.775 crore) in a pipeline being constructed by China National Petroleum Corp to transport gas from offshore A-1 and A-3 blocks in Myanmar. Similarly, GAIL has been approved investment of $83.88 million (Rs.387 crore) in the Chinese pipeline.
This will allow OVL and GAIL to take 8.35 and 4.17 percent participating interest in the pipeline, which will transport gas from Myanmar’s A-1 and A-3 offshore blocks.
‘The additional investment (in development of Myanmar hydrocarbon blocks) 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 (India) Limited,’ said a government press communique.
While South Korea’s Daewoo is the operator of the blocks with 60 percent equity, ONGC and GAIL hold 17 and 8.5 percent stake.
The cabinet also approved additional investment by ONGC’s overseas arm ONGC Videsh Limited into Myanmar of $664.7 million (Rs.3,072 crore) in upstream development project for the blocks, with another $361.39 million (Rs.1,670 crore) by GAIL.