State-owned Oil and Natural Gas Corp (ONGC) on Thursday said it has received a one-year extension to explore in a Vietnam oil block in the contested waters of the South China Sea.
It had in May applied to the Vietnamese authorities for a third extension of the exploration licence for deepsea Block 128 to maintain India's strategic interest in the South China Sea. In a regulatory filing, ONGC said its overseas investment arm, ONGC Videsh ltd (OVl) had applied for extension of block to PetroVietnam, Vietnam's national oil company, on May 28, 2015.
“In response of ONGC Videsh request, PetroVietnam has granted extension of the block up to June 15, 2016,” it said. OVl had signed Production Sharing Contract (PSC) for the 7,058 square kilometer Block 128 in offshore PhuKhanh Basin, Vietnam on May 24, 2006. Ministry of Planning & Investment (MPI), Vietnam issued investment licence for the Block on June 16, 2006, being effective date of the PSC, ONGC said.