PETRONAS, together with joint venture partner Chevron, has been awarded a deepwater exploration block offshore Vietnam, the company’s first deepwater acreage in the country.
The Production Sharing Contract (PSC) for Block 122 was signed in Hanoi, Vietnam, on Friday, 28 April, between PetroVietnam, PETRONAS Carigali Overseas Sdn Bhd and Chevron Vietnam Phu Khanh (Block 122) Ltd. Mr. Mohamad Johari Dasri, Managing Director & CEO of PETRONAS Carigali Sdn Bhd, represented PETRONAS Carigali Overseas, while Mr. Steve Green, the Managing Director & CEO of Chevron Asia South Ltd, signed on behalf of Chevron Vietnam. PetroVietnam was represented by its President & CEO Dr. Tran Ngoc Canh.
Block 122 covers an area of about 6,981 square km in Vietnam’s Phu Khanh Basin, and is located in water depths of between 50 and 2,500 metres.
Under the terms of the PSC, equal partners PETRONAS and Chevron will jointly commit to acquire, process and interpret 3,000 km of 2D seismic data, reprocess 2,000 km of seismic data and drill one exploratory well in the Block during the first three of the PSC’s seven-year exploration period. Chevron is the operator of the Block.
The partners expect to complete their proposed work programme for the Block within the PSC’s first three years, after which they would decide whether to proceed with the remaining phases of the exploration period.
The latest PSC marks an important milestone for PETRONAS in its exploration activities in Vietnam, particularly in the deepwater area. Apart from Block 122, PETRONAS has interests in six other blocks in Vietnam. PETRONAS operates one of the six blocks while the remaining five are under joint operation with various partners.
PETRONAS, an active player in Vietnam’s upstream hydrocarbon exploration, first entered the country in 1991 and has also ventured into downstream LPG and petrochemical businesses as testimony to its long-term investment commitment in the country.
Media Relations Department