US, domestic oil firms to explore off central Vietnam coast
Source: Thanh Nien News
The US-based Pogo Producing Co. and a PetroVietnam Exploration and Production affiliate are set to conduct 3-D seismic exploration on Block 124 offshore central Vietnam.
The process is scheduled to take place from September 7 to October 31 [2006], the central Phu Yen Provincial People’s Committee told the local Nguoi Lao Dong Tuesday.
Block 124 is located in Phu Khanh Basin covering a 6.007 sq.km area along the country’s central coastal line between Phu Yen and Khanh Hoa provinces.
The exploration block was offered for international tender by PetroVietnam in October 2004.
PetroVietnam signed an oil exploration contract with US Pogo and Canada’s Keeper Resources on Block 124 in April.
Under the 7-year-term contract, the foreign contractors committed to conduct 3-D seismic exploration on an 850 sq.km area and drill two exploration wells in the first 3 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.
According to Pogo, the company’s preliminary analysis utilizing existing 2-D seismic data indicated the presence of several promising leads in Miocene and Paleozoic aged rocks.
Pogo Producing Company engages in the exploration, development, acquisition, and production of oil and gas in the US.
It owns or holds interests in offshore properties in the Gulf of Mexico, and onshore properties in the states of Texas, New Mexico, Wyoming, and Louisiana. The company also operates in the Gulf of Thailand, New Zealand, and in Hungary.
The Vietnamese oil and gas giant is targeting deepwater areas 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 at the threshold of WTO entrance.
Total turnover from the industry now amounts to 25 percent of total tax collection.
