Vietnam supports India's bid for BP gas assets: Deora

Ammar Zaidi

Dalat (Vietnam), July 22 (PTI) India Thursday won
Vietnam's support for its bid for crisis-hit BP Plc's energy
assets in the South Asian country, as Hanoi stressed BP must
give priority to its partners in the stake sale.
The two nations, who are partners of BP in offshore gas
fields in Block 06.1, appeared cozying up for splitting the
British firm's stake between them after a meeting between
India's Oil Minister Murli Deora and Vietnamese Prime Minister
Nguyen Tan Dung.
"I had a very good meeting where the Vietnamese Prime
Minister agreed with our proposal to takeover BP's interest
(in an offshore gas field, a pipeline and a power plant -
together known as Nam Con Son project)," Deora told PTI here.
"He was supportive and asked us to work out details (of
the bid)," he said without further elaborations.
ONGC Videsh Ltd, the overseas investment arm of state-run
Oil and Natural Gas Corporation (ONGC), already has 45 per
cent stake in the offshore gas fields where BP has 35 per cent
and the balance 20 per cent is with Vietnam's national oil
firm PetroVietnam.
Both OVL and PetroVietnam are keen to acquire BP's stake
in the fields that currently produce about 14 million standard
cubic meters per day of gas.
"He (Dung) sounded very positive (on India making a bid
for BP's interest). I think we are making progress," Deora
said, adding Vietnam gave enough hints that it will not come
in way of BP selling its stake to India.
Vietnam's Deputy Minister of Industry and Trade Do Huu
Hao earlier said BP must give priority to its partners in
sales of stakes in Vietnam assets before making offers to
outside parties. In all likelyhood, OVL and PetroVietnam may
arrive at an understanding to divide the BP's stake between
them.
"We are open to taking 1 per cent to 35 per cent stake,"
Deora said. "Since (India's first Prime Minister Jawarhal)
Nehru to (former prime ministers) Indira Gandhi and Rajiv
Gandhi and now (United Progressive Alliance Chairperson) Sonia
Gandhi, India has always supported Vietnam. We have very good
relations with them and we will be happy to extend our
relationship."
Besides the offshore fields, BP also has 32.33 per cent
stake in a 371-km pipeline, built at a cost of USD 565
million, that ships the gas produced from the fields to
onshore power plants. ConocoPhillips (16.7 per cent) and
Petrovietnam (51 per cent) are other partners in the pipeline.
The gas produced from the fields is supplied to a 720 MW,
USD 412 million Phu My-3 power plant where BP, Japan's Kyushu
Electric Power and Singapore's Sembcorp have 33.3 per cent
stake each.
India is keen to take BP's stake in the pipeline project
and the power plant.

ONGC Chairman and Managing Director R S Sharma, OVL
Managing Director R S Butola, GAIL Chairman and Managing
Director B C Tripathi, OIL Chairman and Managing Director N M
Borah and IOC Director (Refineries) B N Bankapur are part of
the high-level delegation Deora is leading.
Besides Nam Con Son, BP also owns 75.9 per cent operating
interest in Block 5-2 with Petrovietnam holding 24.1 per cent.
It partners ConocoPhillips and PetroVietnam in Block 5-3.
OVL also has two other exploration blocks - 127 and 128
in Vietnam.
The gas fields in Block 06.1 were discovered in 1998 and
were put on production in January 2003. The field produced an
average of 12 mmscmd in 2009 and with additional compressors
being put, the output will rise to 15 mmscmd. PTI ANZ
MYR