Investment aligned with Act East Policy
The Cabinet Committee on Economic Affairs has approved an additional investment of US$121.27 million by ONGC Videsh Ltd (OVL) in the continuing development of the Shwe oil and gas project in Myanmar, said CCEA on 24 June 2020.
OVL, which has invested US$722 million as of 31 March 2019, has been associated with the exploration and development of the Shwe gas project since 2002 as a partner in a consortium of companies from South Korea, India and Myanmar.
The Indian PSU, GAIL, is also a co-investor in this project.
The Shwe Project pumped first gas in July 2013 and production peaked in December 2014. The Project has been generating positive cash flows since FY 2014-15.
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 strategy to develop Energy Bridges with its neighbours in addition to further strengthening India’s energy security needs. fiinews.com
