State-owned Vietnam National Industry-Energy Group (PetroVietnam) and its international partners in Block 15-1 have signed a new production sharing contract (PSC).
The new 25-year PSC paves the way for a final investment decision on the Phase 2B development in the White Lion (Su Tu Trang) gas and condensate field, which aims to deliver 125 million standard cubic feet of gas a day for seven years “to support Vietnam’s rapidly growing domestic market”, Perenco Group said in a press release Thursday.
The Cuu Long Basin’s Block 15-1 is located 180 kilometers (111.85 miles) southeast of Ho Chi Minh City in waters about 47 meters (154.2 feet) deep. It started production 2003 through the Black Lion field, which holds estimated reserves of 600 million barrels of oil. Golden Lion, Brown Lion and White Lion were subsequently put into production October 2008, September 2014 and November 2016 respectively. The block reached 400 million barrels of oil production in 2022, according to PetroVietnam.
“With a series of mines discovered and continuously put into exploitation, Cuu Long Petroleum Operating Company – the unit exploiting and developing projects at Block 15-1 has become the 2nd largest oil exploiter in Vietnam”, PetroVietnam said separately.
Oil is processed at the Dung Quat refinery for delivery to the domestic market. The block also supplies gas to Vietnam’s Southeast region, according to PetroVietnam.
“[N]ot many offshore oil and gas blocks in Vietnam possess both large-scale commercial oil and gas fields. Block 15-1 is one of the few rare exceptions”, PetroVietnam said. “Here, oil fields such as Black Lion, Golden Lion, and Brown Lion operate in parallel with the White Lion gas field – creating an integrated exploitation ecosystem, optimizing both technical infrastructure and operational efficiency”.
In the new PSC, PetroVietnam owns 59 percent through Oil and Gas Exploration and Production Corp. (PVEP). Perenco holds 19.8 percent, Korea National Oil Corp. 11.4 percent, SK 7.2 percent and Geopetrol 2.6 percent.
“The newly signed contract will facilitate the continued efficient exploitation of existing mines, while opening up opportunities to discover and develop new potential structures in the area”, PetroVietnam said.
“Maintaining and expanding exploitation activities at Block 15-1 also contributes to ensuring national energy security, while maintaining Vietnam’s strong presence in sovereign waters”.
“In the coming time, the demand for energy for development is very large, clearly shown in the recent Adjustment of the 13th Power Plan”, Deputy Prime Minister Bui Thanh Son was quoted as saying by PetroVietnam. “The early and highly effective implementation of key energy projects, oil and gas projects, and important oil and gas contracts, such as PSC Block 15-1 today, plays a very important role in contributing to achieving the goals of developing the national oil and gas industry, ensuring energy security and socio-economic development of the country”.
To contact the author, email jov.onsat@rigzone.com
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