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ONGC Videsh's Keeness on Exploring Vietnam Block Despite Poor Prospectivity: Implications

News

ONGC Videsh Ltd, the overseas arm of ONGC has decided not to exit Vietnam Oil Block,in the contested water of South China Sea,despite poor hydrocarbon productivity.

Source: ET 

SNP Insight

The move highlights the strategic intent on part of India in terms of retaining its presence in South China Sea along with the risk involved in terms of penalties worth USD 15-20 million. This demostrate the strong stand being taken by China in terms of maintining the Exploration & Production activity in the country. India too can impose such penalities to enforce discipline in E&P sector.

Source: SNP Infra Research