CCEA approves investments of OVL in exploratory blocks in Trinidad

New Delhi, June 26 (UNI) The Cabinet Committee on Economic Affairs (CCEA) today gave its approval for investments by ONGC Videsh Limited (OVL) for exploratory blocks NCMA 2 in Trinidad and Tobago and ES 470 &SM 1413 blocks in Brazil.

Briefing newspersons on the outcome of the CCEA meeting, Minister of State in the Prime Ministers Office Prithviraj Chavan gave details of the investment to be made by OVL in these exploratory blocks.

The following are the details relating to North Coast Marine Area 2 (NCMA 2) block in Trinidad and Tobago: (1) In the event of successful negotiation of the Production Sharing Contract (PSC) with the government of Trinidad and Tobago (T&T) for Block NCMA 2, to authorise OVL to provide its share of funding and guarantee support; (2) To authorise OVL to invest 155 million dollars in the first exploratory phase of Block NCMA 2 in offshore T&T with IRR of more than 14 per cent; (3) To authorise ECS to approve additional investment of up to 30 per cent increase in the costs in case of escalation in future, provided the expected internal rate of return remains over 10 per cent; (4) To authorise Ministry of Petroleum and Natural Gas to give specific approval to ONGC for providing funding and guarantee support, in excess of 30 per cent of ONGC's net worth, if required by OVL without seeking budgetary support from the Governent of India; (5) To authorise ECS to allow OVL to farm out a suitable share in the block for sharing risk and leveraging experience in the region to an experienced player, should the same be considered appropriate by OVL Board or OMEL as the case may be.

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