The Cabinet Committee on Economic Affairs (CCEA) on Thursday approved Oil and Natural Gas Corporation Videsh Ltd’s (OVLs) $149.46 million investment plan to further develop its gas field project in Vietnam. The company has been asked to arrange for funds on its own.

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.

The development of Phase I and II of OVL’s Vietnam project was completed in 2008. Phase III of the project envisages further enhancement, including drilling of two development wells, sub-sea completion and tie-back of wells through a common pipeline.

“The revised estimated expenditure for the whole project during 1998-2015 is $838.80 million against the earlier estimates of $228 million to $377.36 million, thereby necessitating an additional expenditure of $149.46 million,” according to an official statement issued here. The additional investment is expected to provide higher reserve accretion of hydrocarbon and more production from the project of OVL, it added.

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