India Clears ONGC's Myanmar Investment Plans
The Indian cabinet committee on economic affairs has approved an additional investment of $121.27mn by ONGC Videsh (OVL), a unit of state-run ONGC, towards further development of blocks A-1 and A-3 of Shwe oil and gas project in Myanmar, the government announced on June 24.
OVL has been associated with the exploration and development of the offshore Shwe project since 2002, as part of the consortium led by South Korea’s Posco Daewoo which has a majority 51% stake. Other partners are India's Gail, the Myanmar Oil and Gas Enterprise and South Korean Kogas.
OVL has invested $722mn till March 2019 in this project, the government said. The first gas from the Shwe project was received in July 2013 and plateau production was reached in December 2014.
“The participation of Indian public sector units in oil and gas exploration and development projects in neighbouring countries is aligned with India's act east policy, and also part of India's efforts to develop energy bridges with its immediate neighbours,” the government said.