Firms Ink PetroVietnam Deal

Following the signing of a product-sharing contract (PSC), Pearl Oil Ltd (Singapore), Serica Energy Group (Canada), and Lundin New Ventures B.V (Holland) will explore for oil and gas in the 4,100 sq.km Block 06-94. The three parties each hold a one-third interest.

Pearl will be the contract operator and inject $49.3m in analyzing 2-D and 3-D seismic data and conducting exploratory drilling in the first three years. Block 06-94 is located immediately south of the Lan Tay and Lan Do gas fields, which are being developed by the UK’s BP, India’s ONGC Videsh, and PetroVietnam.

In 2004 PetroVietnam and the UK’s PGS Geophysical inked a cooperation agreement that granted PGS exclusive rights to acquire a multi-client 3D (MC3D) seismic survey over the block to identify and map reservoir sands. The block has been rated as having significant hydrocarbon potential. PetroVietnam is targeting deepwater resources off the nation's coast in a bid to expand petroleum reserves, as output from existing fields slows. Global oil and gas giants are planning investment and expansion of business in Vietnam, making the petroleum sector one of the busiest following WTO entry. They include British BP and US-based ConocoPhillips who plan to invest over $1 billion apiece. Source: Than Nien