|Workers of PetroVietnam check the Bach Ho (White Tiger) oil facility. The group has recently signed a production sharing contract (PSC) with a consortium of contractors. — VNA/VNS Photo Thanh Long
HA NOI (VNS)— The Viet Nam Oil and Gas Group (PetroVietnam) has signed a lucrative production-sharing contract (PSC) with a consortium of contractors.
The consortium, which will explore Block 42 on the continental shelf waters of Viet Nam, includes PetroVietnam Exploration and Production Corporation (PVEP) and the Russia-Viet Nam oil and gas joint venture, Vietsovpetro.
Under the agreement, which was signed in Ha Noi late last week, PVEP will work as the manager for the project and will have a 51 per cent share.
Covering an area of 4,682 sq.km, Block 42 in Phu Quoc basin is seen as a lot holding considerable oil and gas potential.
Speaking at the function, PetroVietnam General Director Do Van Hau said the contract demonstrated the close and effective co-operation between PetroVietnam and Russia's Zarubezhneft through the Vietsovpetro joint venture.
The PSC is the fifth contract that Vietsovpetro has engaged in Viet Nam, following those in Bach Ho (White Tiger), Rong (Dragon) and Doi Moi (Turtle) oil fields.
Zarubezhneft General Director Sergei Kudryashov described Vietsovpetro as a bridge for the solidarity and friendship between Viet Nam and Russia, adding that the newly-signed PSC further consolidated the effectively friendly relations between the two nations.
The exploration and exploitation of Block 42 is expected to open up new prospects for Phu Quoc basin and attract more stable investment in the area, contributing to the Vietnamese oil and gas sector's development strategy and the national energy security programme. — VNS