Russian oil firm to operate Vietnamese offshore gas block

Russian TNK-BP has signed the transfer agreements on the Vietnamese offshore gas Block 06.1 so that it will take over the operating role of the gas field as soon as possible this year.

The agreements, which will now be submitted to the Vietnamese Ministry of Industry and Trade to receive final approval, were signed by the block’s former operator BP, as well as TNK-BP’s future partners in the joint venture, PetroVietnam and ONGC Videsh Limited of India.

The deal, by which TNK-BP will acquire BP’s stakes in upstream, pipeline and electricity assets in Vietnam and Venezuela for a total of $1.8 billion, was announced in October 2010.

Block 06.1 is Vietnam’s largest gas field and will bring TNK-BP production of 18.8 thousand barrels oil equivalent per day on a net entitlement basis in 2011.

“We are confident that Block 06.1 is a high-quality asset that will enable TNK-BP to develop new expertise, particularly its offshore capabilities. As operator of Block 06.1, TNK-BP will ensure responsible operations and the highest commitment to environmental safety,” said Maxim Barsky, Deputy Chief Executive Officer of TNK-BP.

The acquisitions in both Vietnam and Venezuela are on track to be completed in the first half of 2011.

NK-BP is Russia’s third largest oil company, 50 percent held by BP and 50 percent held by the AAR Consortium (Alfa Group, Access Industries, and Renova). TNK-BP also owns close to 50 percent of another Russian oil and gas company, Slavneft.

TNK-BP accounts for approximately 16 percent of Russia’s production, including its share of Slavneft.  -Tuoitre

Posted by VBN on May 1 2011. Filed under Oil-Gas & Petroleum. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry