Joint Venture
RAVVA Joint Venture
Government of India, as per its oil fields privatization
policy, invited in 1992 bids for a joint venture with
the national oil company, ONGC, for developing the RAVVA
oil & gas field.
Videocon International Limited (lead partner) and
Command Petroleum Holdings NL, Australia, submitted
a bid for development of discoveries in RAVVA oil
& gas field contract area, and also for exploration
of leads and prospects, supported by a development
plan. Marubeni Corporation, Japan, joined the consortium
later.
Government of India awarded the contract to the consortium,
and the RAVVA Production Sharing Contract (PSC) was
executed on October 28, 1994, between Government of
India, ONGC, Videocon Petroleum Ltd (name changed
to Petrocon India Limited, now stands merged with
Videocon Industries Ltd), Command Petroleum, and RAVVA
Oil (Singapore) of Marubeni Group.
The participating interests of the unincorporated
joint venture contractor parties are:
| ONGC: |
40% |
| VIDEOCON (PETROCON):
|
25% |
| COMMAND PETROLEUM: |
22.5% |
| RAVVA OIL: |
12.5% |
Command Petroleum was the designated operator. Command
Petroleum was subsequently acquired by Cairn Energy
India Pty Ltd. A Joint Operating Agreement (JOA) was
executed on October 28, 1994, governing the operating
relationship among the consortium partners.
RAVVA–Joint Venture
The PSC Stipulates:
Duration of the contract as 25 years which can be extended
by a further period of 5 years. In the event of commercial
production of non-associated natural gas, PSC term can
be extended upto 35 years. All decisions are to be unanimous
by parties. Petrocon is actively associated with all
technical aspects of the project development, monitoring
and planning, interpretation of data and in identifying
and assessing of exploration prospects.
Joint Venture Expenditure
The RAVVA joint venture, over the last ten years, incurred
a cumulative expenditure of about US$ 590 million on
field development. So far Videocon’s contribution
of 25% of the above is US$ 148 million.
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