Vietnam said it continues facilitating the operations of India’s investors in oil and gas exploration and exploitation in the continental shelf and the country’s exclusive economic zone (EEZ).

Chairman of Vietnam’s National Assembly Vuong Dinh Hue and AK Gupta, Managing Director and CEO of Oil and Natural Gas Corporation (ONGC) in New Delhi on Dec 17. Photo: Quochoi

Chairman of Vietnam’s National Assembly Vuong Dinh Hue said at the meeting in New Delhi on December 17 with AK Gupta, Managing Director and CEO of Oil and Natural Gas Corporation (ONGC), the Indian state-run largest crude oil and natural gas company in India.

Hue emphasized that Vietnam ensures to protect investors’ interests in accordance with the law to enable them to maintain their long-term operations and expand investment in the energy sector that is one of the pillars in bilateral relations.

He said the National Assembly, the country’s highest legislative body, will revise Law on Oil and Gas to create favorable conditions for the oil and gas industry.

At the meeting, AK Gupta said ONGC expects to run long-term business in Vietnam. At the same time, he pointed out some barriers and suggested resolutions for the development of the industry.

ONGC forayed into Vietnam as early as 1988, when it was awarded the exploration license for Block 06.1. The Block is producing natural gas. The company also got exploration Blocks 127 and 128 in 2006. Block 127 was relinquished after completing the work program.

ONGC owns a 45% stake (together with Vietnamese partner) in Block 6.01 and its share of condensate and oil equivalent gas production from the block was 1.330 million tons during 2020-21 fiscal.

Since 2014, the company has for the seventh time applied for a two-year extension valid in June 2021 to explore Block 128 in the contested waters of the South China Sea, according to the India Times.

The Indian company signed a production sharing contract (PSC) with PetroVietnam for deep-water exploratory Block 128 having an area of 7,058 square kilometers in Phu Khanh Basin, Vietnam in May 2006.

The 955 sq km Block 06.1 located in Nam Con Son basin has two producing fields -- Lan Tay and Lan Do -- and has a 35% stake while the remaining 20% is with PetroVietnam.

ONGC said the company continues to explore for oil and gas in the block that lies in a water depth of 200-2,000 meters.