PetroVietnam acquires Chevron assets

Thursday, Jun 18, 2015 17:52

An offshore-oilrig on the country's contiential shelf. — Photo

HA NOI (Biz Hub) – Vietnam Oil and Gas Group, better known as PetroVietnam, acquired two oil and gas exploration and exploitation companies and a pipeline company owned by Chevron, one of the biggest multinational energy corporations in the United Sates.

In a press release, PetroVietnam said it acquired all the stakes in Chevron companies with assets in Việt Nam and offshore projects, including Block B, Bloc 48/95 and Block 52/97.

The companies include Chevron Vietnam (Block B) Ltd with a 42.38 per cent operating interest in the production sharing contract (PSC) covering Blocks B and 48/95; Chevron Vietnam (Block 52) Ltd with a 43.4 per cent operating interest in the PSC covering Block 52/97 and the operator under the two PSCs; and Chevron Southwest Vietnam Pipeling Co Ltd with a holding of 28.7 per cent operating interest in a pipeline project that would deliver natural gas from offshore to gas users in Việt Nam.

PetroVietnam has launched intensive exploration in Blocks B, 48/95 and 52/97 in offshore Viet Nam since 1996 on an area covering 3,200 square kilometres of the Malay-Thổ Chu basin, southwest of Việt Nam. Water depths range from 60-80 metres.

Important gas discoveries were made in 2002 and agreement on joint development reached in 2007. Initial in-place gross gas was estimated at 6.008 trillion cubic feet (tcf), or 170 billion cubic metres (bcm), 4 million cubic metres (mcm) condensates, or 25.5 thousand stock tank barrels (mstb); and recoverable gas reserves (2P categories) at 3.78 tcf (107 bcm), 3 mcm condensates (12.65 mstb).

According to PetroVietnam, these gas reserves will increase when additional exploration is conducted in the remaining contract area of the two PSCs.

The Block B – O Mon project is designed to transport gas from Blocks B and 48/95 and Bock 52/97 in waters southwest of Việt Nam to the O Mon, Kiên Giang power plant hub, and to supplement gas supply to the Cà Mau gas fertiliser hub.

Total investment for development and construction of the gas-power project utilising gas from Blocks B, 48/95 and Block 52/97 is estimated to exceed US$10 billion.

"The Block B gas project is PetroVietnam's main oil and gas project. It is of major significance, contributing to the country's energy security and promoting socio-economic development of the region," said PetroVietnam's chairman, Nguyễn Xuân Sơn.

He said the acquisition of Chevron's assets in Việt Nam would facilitate the acceleration of the field development and the implementation of projects that would make gas quickly available to serve the national economy. – VNS

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