ONGC Videsh Ltd. not to exit Vietnam block despite poor prospectivity.

ONGC Videsh Ltd., the overseas arm of state explorer Oil and Natural Gas Corp, has decided not to exit a Vietnam oil block in the contested waters of the South China Sea despite poor hydrocarbon prospectivity.

OVL has decided to seek a third extension of exploration licence for Block 128 to maintain India's strategic interest in the South China Sea, a top official said.

The block lies in the part of South China Sea over which China claims sovereignty. In 2011, Beijing had warned OVL that its exploration activities off the Vietnam coast were illegal and violated China's sovereignty, but the company continued exploring for oil and gas.

'OVL has not found any hydrocarbons in the block but will continue operations in line with India's strategic and diplomatic interest in the region,' he said.

The extended exploration licence for Block 128 is due expire this month and the company is seeking an extension.

ET