ONGC Videsh (OVL), the foreign investment arm of state-run Oil and Natural Gas Corporation (ONGC), is mulling investment in power, petrochemical and fertilizer plants in the South Asian nation. OVL which has secured two blocks along with Oil India will soon start its maiden exploratory drilling on an onshore oil block in West Bengal.
The two companies plan to develop these blocks, in a joint venture with Bangladesh. Meanwhile, a production-sharing contract (PSC) is expected to be signed for the blocks by August. This development would not be a difficult task to accomplish given that the Bangladesh’s government’s priority is supply to power plants because they have acute power shortage. Further, OVL also plans to bid for oil and gas blocks in Sri Lanka.
