PETRONAS today signed a Petroleum Contract with PetroVietnam and Pertamina to jointly explore for and develop hydrocarbon resources in Blocks 10 and 11.1 offshore Vietnam. Under the contract, the three national oil companies will form a joint venture company to operate the blocks, marking the first of such alliance within the ambit of the Tripartite Cooperation Arrangement between the three counterparts.
The new joint outfit, Con Son Joint Operating Company, will see the participation of PetroVietnam Investment & Development Company (40 per cent), PETRONAS Carigali Overseas Sdn Bhd (30 per cent) and Pertamina (30 per cent). PetroVietnam Investment & Development Company (PIDC) is a wholly-owned subsidiary of PetroVietnam, while PETRONAS Carigali Overseas (PCOSB) is an overseas exploration and production arm of PETRONAS.
Blocks 10 and 11.1 are located on the southern continental shelf of Vietnam in the Nam Con Son basin about 210 kilometres southeast of Vung Tau. The blocks cover an area of approximately 7,915 square kilometres with oil and gas potential. The award of the blocks was the result of a Joint Evaluation and Participation Agreement signed in November 2000 between PETRONAS, PCOSB and PIDC. Phase 1 of exploration work in the blocks is expected to begin this year where the contractors will reprocess 2D and 3D seismic data and conduct further geological and geophysical studies. This will be followed by the drilling of the first two exploration wells next year.
Today’s signing of the Petroleum Contract for the blocks signifies a very significant step towards fostering a more meaningful and mutually beneficial partnership between PETRONAS, PetroVietnam and Pertamina – three of ASEAN’s National Oil Companies. This strategic alliance will also facilitate the transfer and exchange of knowledge and technology between the three partners which will assist in enhancing and upgrading of skills and expertise.
The Tripartite Cooperation Arrangement is set to pave the way for more joint cooperation in the petroleum exploration and production activities between PETRONAS, PetroVietnam and Pertamina in Malaysia, Vietnam and Indonesia. Under the arrangement, joint evaluation of blocks in Malaysia and Indonesia are currently being undertaken and similar contracts are expected to be concluded between the three parties some time this year.
At the Petroleum Contract signing ceremony in Hanoi today, PETRONAS was represented by its President and Chief Executive Tan Sri Dato’ Mohd Hassan Marican, PetroVietnam by its President and Chief Executive Mr Nguyen Xuan Nham, Pertamina by its President Director and Chief Executive Mr Baihaki Hakim and PIDC by its Managing Director Mr Do Van Hau.
Legal & Corporate Affairs Division