New Delhi: (Oil & Gas News) "The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved an additional investment of US$ 121.27 million (about Rs.909 crore) by ONGC Videsh Ltd (OVL) towards further development of blocks A-1 and A-3 Blocks of Shwe oil & gas project in Myanmar," an official statement issued by the government said. ONGC Videsh Ltd. (OVL) has been associated with exploration and development of Shwe project in Myanmar since 2002, as part of a consortium of companies from South Korea, India and Myanmar. The Indian PSU, GAIL, is also an investor in this project. OVL has invested US$ 722 million till 31st March 2019 in this project.
"The first gas from the Shwe Project was received in July 2013 and plateau production was reached in December 2014. The Project has been generating positive cash flows since FY 2014-15" the statement mentioned.
"The participation of Indian PSUs in oil & 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 statement concluded.
ONGC Videsh Limited, a Miniratna Schedule "A" Central Public Sector Enterprise (CPSE) of the Government of India under the administrative control of the Ministry of Petroleum & Natural Gas, is the wholly-owned subsidiary and overseas arm of Oil and Natural Gas Corporation Limited (ONGC). OVL owns Participating Interests in 37 oil and gas assets in 17 countries and produced about 26.2% of oil and 20.7% of oil and natural gas of India's domestic production in FY'18. In terms of reserves and production, OVL is the second-largest petroleum company of India, next only to its parent company ONGC.
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