CCEA approves ONGC Videsh’s ₹909-cr additional investment in Myanmar project

The Cabinet Committee on Economic Affairs has approved an additional investment of $121.27 million (₹909 crore) by ONGC Videsh Ltd (OVL) towards further development of Shwe oil & gas project in Myanmar.

An official statement said that 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. GAIL (India) Ltd is also a co-investor in the project.

OVL has invested $722 million (about ₹3,949 crore) till March 31, 2019 in the project. The first gas from Shwe Project was received in July 2013 and plateau production was reached in December 2014. The project has been generating positive cash flows since fiscal 2014-15, the statement said.

The participation of Indian public sector undertakings in oil and gas exploration and development projects in neighbouring countries is aligned with India’s Act East Policy. It is also a part of India’s strategy to develop energy bridges with its neighbours in addition to further strengthening the country’s energy security needs, the statement added.