Lok Sabha Question No. 220 (STARRED), answered on 2016-05-09
Subject: Acquisition of Assets Abroad by ONGC/OVL
Ministry: PETROLEUM AND NATURAL GAS
Asked by: R. VANAROJA, UDAY PRATAP SINGH

## LOK SABHA STARRED QUESTION NO. 220 TO BE ANSWERED ON 9 TH  MAY, 2016

## ACQUISITION OF ASSETS ABROAD BY ONGC/ OVL

- *220.  SHRIMATI VANAROJA R:

SHRI UDAY PRATAP SINGH:

## पैट्रोलियम और प्राक ृ लिक गैस मंत्री

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

- (a) the  details  of  oil  and  gas  blocks  acquired  by  Oil  and  Natural  Gas  Corporation Limited (ONGC)/ONGC Videsh Limited (OVL)/Oil Marketing Companies (OMCs) along with status of commercial production in these oil and gas blocks, company/country/block-wise;
- (b) whether  the  recent  crash  in  crude  oil  prices  has  affected  the  OVL  to  maintain lower  production  cost  and  positive  cash  flow  and  if  so,  the  details  thereof  along  with corrective steps taken in this regard, company/country/block-wise;
- (c) whether OVL is conducting oil and natural gas exploration in the South China Sea in economic cooperation with Vietnam Government and if so, the details thereof;
- (d) whether  the  Government  has  received  any  representation  from  China  in  this regard and if so, the details thereof along with the response of the Government thereto;
- (e) whether  ONGC/OVL  and  OMCs  including  IOCL  have  bought/proposes  to  buy stake in the Russian Oil fields in Siberia and have signed agreements/Memorandum of Understanding  (MoU)  with  Rosneft  to  develop  Vankor  cluster  fields  of  Suzunskoye, Tagulskoye and Lodochnoye; and
- (f) if  so,  the  details  thereof  along  with  the  amount  proposed  to  be  invested  as  a result of these agreements and MoU, company-wise and the benefits likely to accrue to the country therefrom?

## ANSWER

पैट्रोलियम और प्राक ृ लिक गैस मंत्रािय में राज्य मंत्री ( स्विंत्र प्रभार ) (श्री धमेन्द्र प्रधान) THE  MINISTER  OF  STATE  (INDEPENDENT  CHARGE)  IN  THE  MINISTRY  OF PETROLEUM AND NATURAL GAS (SHRI DHARMENDRA PRADHAN)

- (a) to (f): A statement is laid on the table of the House.

## STATEMENT  REFFERED  TO  IN  REPLY  TO  PARTS  (a)  TO  (f)  OF  LOK  SABHA STARRED  QUESTION  NO.  220  BY  SHRIMATI  VANAROJA  R  AND  SHRI  UDAY PRATAP SINGH TO BE ANSWERED ON 09 TH MAY, 2016 REGARDING ACQUISITION OF ASSETS ABROAD BY ONGC/ OVL

- (a) The details of oil and gas blocks along with the status of commercial production are placed at ANNEXURE A.
- (b) While the crude prices have decreased considerably in the recent times, the cost of Exploration  and  Production  activities  has  not  decreased  at  the  same  rate,  except expenditure on services. Therefore, the recent crash in the crude prices has adversely affected the cash flow of ONGC Videsh Limited (OVL).
- (c) OVL has signed Production Sharing Contracts (PSCs) for exploratory blocks 127 and 128 with 100% Participating Interest (PI) in Offshore Phu Khanh Basin,  in Vietnam in May  2006.  Investment  license  was  issued  for  the  two  blocks  in  June  2006.  After completion  of  the  exploratory  work  OVL  did  not  find  any  indication  of  hydrocarbon  in Block 127. The block was, therefore, surrendered in December 2010. The Block 128 is under  extended  Exploration  Phase-I  and  committed  exploratory  work  program  in  this Block  has  been  completed.  OVL  also  has  an  offshore  gas  producing  block  06.1  in Vietnam with 45% PI.
- (d) In November 2007, the Embassy of China in New Delhi made a demarche on these contracts to the Ministry of External Affairs, claiming China's undisputed sovereignty on the  area  covering  the  two  blocks.    The  Vietnamese  side,  however,  reaffirmed  its sovereign rights on the area of these two blocks in January 2008. OVL has accordingly, continued its exploration activities.
- (e) An Indian Consortium, comprising of Indian Oil Corporation Limited (IOCL), Oil India Limited  (OIL)  and  Bharat  Petro  Resources  Limited  (BPRL),  jointly  signed  Share Purchase  Agreement  with  Rosneft  of  Russia  on  acquiring  29.9  %  share  in  TaasYuryakh. They also signed a Heads of Agreements with Rosneft of Russia on acquiring of  23.9% share in Vankorneft.  The Indian Consortium also signed an MoU with Rosneft of  Russia for  acquiring  stakes  in  Vankor  cluster.  OVL  separately  signed  an  MoU  with Rosneft  of  Russia  regarding  acquiring  of  11%  share  in  Vankorneft.  Earlier  OVL  had signed a SPA with Rosneft for acquisition of 15% share in Vankorneft.
- (f) The final sales contracts have not yet been signed in all these cases.

## OVERSEAS PROJECTS/ASSESTS

|   Sl. No. | Country     | Name of the Project                          | Participating Companies and their Share                                                 | Status of Commercial Production (IOCL) in Boe/d   | Status of Commercial Production (OIL) in BOPD   | Status of Commercial Production (OVL) in MMTOE   |
|-----------|-------------|----------------------------------------------|-----------------------------------------------------------------------------------------|---------------------------------------------------|-------------------------------------------------|--------------------------------------------------|
|         1 | Vietnam     | Block 06.1, Offshore                         | ONGC Videsh- 45% TNK-35% (Operator) Petrovietnam-20%                                    | NA                                                | NA                                              | 1.688                                            |
|         1 | Vietnam     | Block 128, Offshore                          | ONGC Videsh- 100%                                                                       | NA                                                | NA                                              | NA                                               |
|         2 | Russia      | Sakhalin-1, Offshore                         | ONGC Videsh - 20% Exxon Mobil -30% (Operator) Sodeco - 30% SMNG - 11.5% RN Astra - 8.5% | NA                                                | NA                                              | 2.330                                            |
|         2 | Russia      | Imperial Energy, Russia                      | ONGC Videsh- 100%                                                                       | NA                                                | NA                                              | 0.335                                            |
|         2 |             | License 61                                   | OIL: 50% Petroneft: 50%                                                                 | NA                                                | 1085                                            | NA                                               |
|         3 | Sudan       | GNPOC, Block 1, 2 & 4, Sudan                 | ONGC Videsh - 25% CNPC - 40% Petronas - 30% Sudapet - 5% (Jointly Operated)             | NA                                                | NA                                              | 0.627                                            |
|         3 | Sudan       | Khartoum-Port Sudan Pipeline (741 Km), Sudan | ONGC Videsh- 90% (Operator) OIL-10%                                                     | NA                                                | NA                                              | NA                                               |
|         4 | South Sudan | GPOC, Block 1, 2 & 4, South Sudan            | ONGC Videsh - 25% CNPC - 40% Petronas - 30% Nilepet - 5% (Jointly Operated)             | NA                                                | NA                                              | NA                                               |
|         4 | South Sudan | SPOC/Block 5A, South Sudan                   | ONGC Videsh- 24.125% Petronas- 67.875% Nilepet - 8% (Jointly Operated)                  | NA                                                | NA                                              | NA                                               |
|         5 | Myanmar     | Block A-1, Myanmar                           | ONGC Videsh - 17% Daewoo-51% (Operator) KOGAS - 8.5% GAIL - 8.5% MOGE - 15%             | NA                                                | NA                                              | 0.891                                            |

## ANNEXURE  A

| Sl. No.   | Country    | Name of the Project                          | Participating Companies and their Share                                                                         | Status of Commercial Production (IOCL) in Boe/d   | Status of Commercial Production (OIL) in BOPD   | Status of Commercial Production (OVL) in MMTOE   |
|-----------|------------|----------------------------------------------|-----------------------------------------------------------------------------------------------------------------|---------------------------------------------------|-------------------------------------------------|--------------------------------------------------|
|           |            | Block A-3, Myanmar                           | ONGC Videsh - 17% Daewoo-51% (Operator) KOGAS - 8.5% GAIL - 8.5% MOGE - 15%                                     | NA                                                | NA                                              |                                                  |
|           |            | Shwe Offshore Mid-Stream Project, Myanmar    | ONGC Videsh - 17% Daewoo-51% (Operator) KOGAS - 8.5% GAIL - 8.5% MOGE - 15%                                     | NA                                                | NA                                              | NA                                               |
|           |            | Onshore Gas Transportation Pipeline, Myanmar | ONGC Videsh - 8.347% CNPC-SEAP - 50.9% (Operator) Daewoo - 25.041% GAIL - 4.1735% KOGAS - 4.1735% MOGE - 7.365% | NA                                                | NA                                              | NA                                               |
|           |            | Block B-2,                                   | ONGC Videsh - 97% (Operator) M&S - 3%                                                                           | NA                                                | NA                                              | NA                                               |
|           |            | Block EP-3, Myanmar                          | ONGC Videsh - 97% (Operator) M&S - 3%                                                                           | NA                                                | NA                                              | NA                                               |
| 6.        | Mozambique | Rovuma Area- 1                               | ONGC Videsh - 16% Anadarko - 26.5% (Operator) OIL - 4% ENH - 15% Mitsui - 20% BPRL - 10% PTTEP - 8.5%           | NA                                                | NA                                              | NA                                               |
| 7         | Iraq       | Block 8, Iraq                                | ONGC Videsh - 100%                                                                                              | NA                                                | NA                                              | NA                                               |
| 8.        | Iran       | Farsi Offshore Block, Iran                   | ONGC Videsh - 40% (Operator) IOC - 40% OIL - 20%                                                                | NA                                                | NA                                              | NA                                               |
| 9.        | Libya      | Block 43, Libya                              | ONGC Videsh- 100%                                                                                               | NA                                                | NA                                              | NA                                               |
|           |            | Area 95-96                                   | Sonatrach - 50% Indian Oil - 25% OIL - 25%                                                                      | NA                                                | NA                                              |                                                  |
| 10.       | Syria      | Block 24, Syria                              | ONGC Videsh - 60% IPR International -                                                                           | NA                                                | NA                                              | NA                                               |

| Sl. No.   | Country   | Name of the Project                                 | Participating Companies and their Share                                                                       | Status of Commercial Production (IOCL) in Boe/d   | Status of Commercial Production (OIL) in BOPD   | Status of Commercial Production (OVL) in MMTOE   |
|-----------|-----------|-----------------------------------------------------|---------------------------------------------------------------------------------------------------------------|---------------------------------------------------|-------------------------------------------------|--------------------------------------------------|
|           |           |                                                     | 25% (Operator) Tri Ocean Mediterranean - 15%                                                                  |                                                   |                                                 |                                                  |
|           |           | Al Furat Petroleum Co., Syria                       | Himalaya Energy (Syria) B.V. - 33.33% to 37.5% Shell - 66.67% to 62.5% (Operator -Al Furat Petroleum Company) | NA                                                | NA                                              | NA                                               |
| 11.       | Brazil    | Block BM- SEAL-4, Brazil                            | ONGC Videsh- 25% Petrobras -75% (Operator)                                                                    | NA                                                | NA                                              | NA                                               |
|           |           | BC-10, Brazil, Offshore                             | ONGC Videsh - 27% Shell - 50% (Operator) Qatar Petroleum International - 23%                                  | NA                                                | NA                                              | 0.689                                            |
| 12.       | Colombia  | Mansarovar Energy Colombia Limited (MECL), Colombia | ONGC Videsh-25- 50%, Sinopec-25-50% Ecopetrol-50% (Jointly Operated)                                          | NA                                                | NA                                              | 0.623                                            |
|           |           | Block RC-8, Colombia                                | ONGC Videsh - 40% (Operator) Ecopetrol - 40% Petrobras - 20%                                                  | NA                                                | NA                                              | NA                                               |
|           |           | Block RC-9, Colombia                                | ONGC Videsh - 50% Ecopetrol - 50% (Operator)                                                                  | NA                                                | NA                                              | NA                                               |
|           |           | Block RC-10, Colombia                               | ONGC Videsh - 50% (Operator) Ecopetrol - 50%                                                                  | NA                                                | NA                                              | NA                                               |
|           |           | Block LLA-69, Colombia                              | ONGC Videsh - 50% SIPC - 50% (Jointly Operated)                                                               | NA                                                | NA                                              | NA                                               |
|           |           | Block GUA OFF 2, Colombia                           | ONGC Videsh - 100%                                                                                            | NA                                                | NA                                              | NA                                               |
| 13        | Venezuela | San Cristobal Project,                              | ONGC Videsh- 40% PDVSA-60% (Jointly Operated)                                                                 | NA                                                | NA                                              | 0.649                                            |
|           |           | Carabobo-1 Project,                                 | ONGC Videsh - 11%                                                                                             | 676.31                                            | 770                                             | 0.119                                            |

| Sl. No.   | Country     | Name of the Project                | Participating Companies and their Share                                                                                                            | Status of Commercial Production (IOCL) in Boe/d   | Status of Commercial Production (OIL) in BOPD   | Status of Commercial Production (OVL) in MMTOE   |
|-----------|-------------|------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------|-------------------------------------------------|--------------------------------------------------|
|           |             | Venezuela                          | IOC - 3.5% OIL - 3.5% Petronas - 11% PDVSA - 71% (Jointly Operated)                                                                                |                                                   |                                                 |                                                  |
| 14        | Kazakhstan  | Satpayev Project, Kazakhstan       | ONGC Videsh - 25% KMG - 75% (Operator)                                                                                                             | NA                                                | NA                                              | NA                                               |
| 15.       | Azerbaijan  | ACG, Azerbaijan                    | ONGC Videsh- 2.7213% BP-36% (Operator) SOCAR-12% Chevron-11% INPEX-11% Exxon-8% StatOil-8% TPAO-7% ITOCHU-4%                                       | NA                                                | NA                                              | 0.965                                            |
|           |             | BTC Pipeline (1760 Km), Azerbaijan | ONGC Videsh- 2.36% BP-30.1% (Operator) SOCAR-25% StatOil-8.71% TPAO-6.53% ITOCHU-3.4% Chevron-8.9% INPEX-2.5% ENI-5% TOTAL-5% Conoco Philips- 2.5% | NA                                                | NA                                              | NA                                               |
| 16.       | Bangladesh  | Block SS4, Bangladesh              | ONGC Videsh - 45% (Operator), OIL - 45% BAPEX - 10%                                                                                                | NA                                                | NA                                              | NA                                               |
|           |             | Block SS9, Bangladesh              | ONGC Videsh - 45% (Operator), OIL - 45% BAPEX - 10%                                                                                                | NA                                                | NA                                              | NA                                               |
| 17.       | New Zealand | Block- 14TAR- R1,                  | ONGC Videsh - 100%                                                                                                                                 | NA                                                | NA                                              | NA                                               |
| 18.       | Indonesia   | Nunukan Block                      | BPRL- 12.5% PT Pertamina Hulu Energy-35% (operator) PT Medico - 40% Videocon Indonesia -12.5%                                                      | NA                                                | NA                                              | NA                                               |

|   Sl. No. | Country    | Name of the Project                    | Participating Companies and their Share                                                            | Status of Commercial Production (IOCL) in Boe/d   | Status of Commercial Production (OIL) in BOPD   | Status of Commercial Production (OVL) in MMTOE   |
|-----------|------------|----------------------------------------|----------------------------------------------------------------------------------------------------|---------------------------------------------------|-------------------------------------------------|--------------------------------------------------|
|        19 | Australia  | Block EP - 413 (onland)                | BPRL- 27.803%                                                                                      | NA                                                | NA                                              | NA                                               |
|        20 | East Timor | Block JPDA 06-103                      | BPRL- 20%                                                                                          | NA                                                | NA                                              | NA                                               |
|        21 | USA        | Niobrara Shale Oil/Condensate JV asset | Carrizo (Niobrara) LLC - 60% OIL - 20% Indian Oil - 10% Haimo Oil & Gas - 10%                      | 561                                               | 354                                             | NA                                               |
|        22 | Canada     | Pacific Northwest LNG Project          | Progress Energy Canada Ltd. - 62% Sinopec - 15% Indian Oil - 10% Japex - 10% Petroleum Brunei - 3% | 11,891.5                                          | NA                                              | NA                                               |
|        23 | Nigeria    | OPL- 205 OML - 142                     | Summit Oil 30% Suntera Nigeria 205 Ltd - 70%* * Suntera 50%, Indian Oil 25%                        | NA                                                | NA                                              | NA                                               |
|        24 | Gabon      | Shakthi                                | Old PSC: OIL - 45% Indian Oil - 45% Marvis Pte Ltd - 10% New PSC: OIL - 50% Indian Oil - 50%       | NA                                                | NA                                              | NA                                               |
|        25 | Yemen      | 82                                     | Medco - 45% Kuwait Energy - 25% IOC- 15% OIL- 15%                                                  | NA                                                | NA                                              | NA                                               |