Giving a push to infrastructure development across sectors, the government on Wednesday approved a proposal for additional investment to be made by ONGC Videsh Ltd (OVL) in the development of an oil and gas project in neighbouring Myanmar.
As per the clearance given by the Cabinet Committee on Economic Affairs (CCEA), OVL will be investing an additional $121.27 million (about Rs 909 crore) by ONGC towards further development of Shwe oil & gas project in Myanmar.
OVL, the Overseas investment subsidiary of ONGC, has already invested $722 million (about Rs 3,949 crore) till March 31, 2019 in the Shwe project that has given it positive cash flows since 2014-15.
OVL has been associated with exploration and development of Shwe gas project in Myanmar since 2002, as part of a consortium of companies from South Korea, India and Myanmar. Indian PSU, GAIL, is also a co-investor in this project.
The first gas from Shwe Project was received in July 2013 and plateau production was reached in December 2014. Additional investment in the project will help the block to ramp up production and generate more value to the investors.
The participation of Indian PSUs in oil & gas exploration and development projects in neighbouring countries is aligned with government’s Act East Policy, and also part of India’s strategy to develop ‘energy bridges’ with its neighbours in addition to further strengthening India’s energy security needs.