The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved an additional investment by ONGC Videsh (OVL) towards further development of Shwe oil and gas project in Myanmar.
An official release said that the CCEA has approved an additional investment of USD 121.27 million (about Rs 909 crore) by OVL towards further development of the oil and gas project in Myanmar.
OVL has been associated with exploration and development of Shwe gas project since 2002 as part of a consortium of compes from South Korea, India and Myanmar. The Indian PSU, GAIL, is also a co-investor in this project.
The participation of Indian PSUs in oil and gas exploration and development projects in neighbouring countries is aligned with India's Act East Policy and is also part of India's strategy to develop energy bridges with its neighbours in addition to further strengthening India's energy security needs.
An official release said that OVL has invested USD 722 million (about Rs 3,949 crore, as per corresponding average annual exchange rate) till March 31, 2019, in this 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 2014-15.
( With inputs from ANI )