Viet Nam National Oil and Gas Group (PetroVietnam) on Monday signed a contract employing PetroVietnam Exploration Production Corporation (PVEP) to operate oil blocks 01 & 02.

PetroVietnam took over blocks 01 & 02 at the Cuu Long basin, offshore Viet Nam, from PC Vietnam Limited, a subsidiary of Malaysia’s Petronas, on September 9 after the 26-year Production Sharing Contract (PSC) for the blocks expired.

After the takeover, PVEP quickly set up a management board with the most qualified and experienced personnel to temporarily manage the two oil projects to ensure they run smoothly. In the last one month, the two projects operated safely, with an estimated production of 360,000 barrels of oil and revenues of over US$20.5 million.

This positive result prompted PetroVietnam to choose PVEP to officially operate blocks 01 & 02. After the signing, PetroVietnam will build a suitable mechanism for PVEP to engage deeper in the group’s petroleum project management in the future, hoping to take advantage of high-quality human resources and the management experience of PVEP. — VNS