PetroVietnam to Sign Oil Exploration Contract

PetroVietnam is to sign an oil exploration contract with US Pogo and Canada’s Keeper Resources on block 124 offshore of central Vietnam. Block 124 is located in Phu Khanh Basin covering a 6.007 sq.km area along the country’s central coastal line, 50km northeast of Nha Trang City. The exploration block was offered for international tender by PetroVietnam in October 2004. Under the seven-year-term contract, the foreign contractors committed to conduct 3D seismic exploration on an 850 sq.km area and drill two exploration wells in the first three years of exploration. PetroVietnam is entitled to 20 percent equity participation when oil or gas is discovered under the contract, in which US Pogo is the main operator. PetroVietnam is expected to sign four new exploration contracts with foreign partners this year, and is holding negotiations or tenders for as many as seven more. (Source: Thanh Nien Daily)