Friday, 6 August 2010

PetroVietnam and ONGC to make joint formal offer to buy BP's Nam Con Son gas project

PetroVietnam has said that it will not participate in a bidding war over BP's stake in the Nam Con Son gas project, and that it will wait for the government's approval before making an official offer.

"We will buy at a reasonable price, not at any price," said, PetroVietnam, chairman, Dinh La Thang.

PetroVietnam has a 20 per cent stake in Block 6.1 in the Nam Con Son basin, off Vietnam's southeast coast. India's state-run explorer Oil and Natural Gas Corp (ONGC) owns 45 per cent and BP, the operator, owns the remainder.

Indian oil secretary Shri S.Sundareshan has said that the ONGC and PetroVietnam will submit a joint formal offer in order to successfully purchase BP's asset.

BP'S plans to sell its stake in the Nam Con Son project are part of the company's aim to sell off $30 billion worth of assets over the next year to cover costs for containing the oil spill in the Gulf of Mexico.

Source: Reuters

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