Malaysian firm, Vietsovpetro to operate new oil field

Malaysian firm Bumi Armada snd Vietnamese-Russian joint venture Vietsovpetro have been awarded contracts to operate a new oil field called White Rhinoceros in the Cuu Long Basin of coastal Vung Tau City.

The Hoang Long Joint Operating Company signed three deals with the Malaysian firm and the joint venture Friday (Nov 20), which established an alliance to run the field also called Te Giac Trang (TGT) for seven years, with an option of yearly extensions to 15 years. The deals have a total worth of US$700 million

Bumi Armada would be responsible to supplying alliance with a floating production storage and offloading vessel which has a capacity of 45,000 barrels of oil per day and a storage capacity of 100 million barrels of processed oil with water and gas injection, said Hoang Long’s chief executive officer Ngo Huu Hai

He said the joint venture would conduct offshore installation and subsequent maintenance of the vessel to operate the field.

The first production of oil from the field with estimated reserves of 300 million barrels of oil about 20 kilometers northwest of the Bach Ho field and 35 kilometers west of Rang Dong field is expected by the second quarter of 2011, Hai added.

Hoang Long which has the TGT concession for 10 years, is a partnership comprising Petrovietnam, Soco International, national petroleum exploration and production company PTTEP and Opeco Vietnam.

Tags: Vietnam business news, Vietnam Malaysia corporation