In a major development, the Union Cabinet on Wednesday approved additional investment by ONGC Videsh (OVL) towards further development of Shwe oil & gas project in Myanmar.
The decision was taken in a cabinet meeting chaired by Prime Minister Narendra Modi.
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The participation of India’s PSU giant in oil & gas exploration and development projects in neighbouring countries is aligned with India’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.
The Cabinet Committee on Economic Affairs approved an additional investment of US$ 121.27 million (about Rs 909 crores) by ONGC Videsh Ltd (OVL) towards further development of Shwe oil & gas project in Myanmar.
ONGC Videsh (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. The Indian PSU, GAIL, is also a co-investor in this project.
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OVL has invested US$ 722 million (about Rs 3949 crores, as per corresponding average annual exchange rate) 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.