PetroVN finds its first Malaysian offshore oil

PetroVietnam Exploration Production Corporation (PVEP) has reported the first oil extracted at the D30, Block SK305 field offshore Malaysia.

The field churns out an average 4,730 barrels of crude oil and 7.83 million cubic metres of gas a day. The accumulated production until July 31 reached 170,340 barrels with 282 million cubic metres of gas, PVEP said.

The SK305 project had been implemented under a common co-operation agreement on oil and gas exploitation and exploration between Viet Nam, Malaysia and Indonesia. Its contract came into effect on June 16, 2003.

PCPP Operating Co is a joint venture between the three state-run companies to operate the project. PVEP, an affiliate of Viet Nam’s leading PetroVietnam group, holds 30 per cent; Petronas Carigali Sdn Bhd, a member of Malaysia’s leading Petronas group, has 40 per cent; Indonesian Pertamina Co holds the remainder.

This is one of 20 contracts that PVEP has signed to explore and exploit oil and gas abroad. The firm also signed 38 other deals for oil and gas exploitation in Viet Nam.

Block 305 is located in Balingian province, offshore from Sarawak, with the average water depth of 150m. The joint venture is exploring about 18 drilling wells. The fields D30 and Dana are the first two selected for early exploration and exploitation, PVEP said.

This is one of two projects bringing products for PVEP from overseas fields; the other one is in Algeria.

Dinh La Thang, chairman of PetroVietnam, affirmed to continue bolstering the strategic collaboration between PetroVietnam and Petronas in their oil and gas exploration activities.

PVEP also expected to extract the first oil from its largest project with a total investment capital of US$12 billion: the Block Junin 2 in Venezuela in 2012, corporation chairman Tran Duc Chinh said.

“In the context of oil and gas resources in the country becoming exhausted, PVEP has mapped out strategies to boost oil and gas exploitation and exploration abroad in an effort to ensure the country’s energy security and reserves,” he said.

Four million tonnes of crude oil exploited from Junin 2 will be imported to Viet Nam to supply the local market.

To carry out its projects overseas, the corporation would flexibly apply various regimes, possibly set up joint ventures or buy oil rigs abroad, Chinh said.

In its strategies, PVEP plans to bolster oil and gas exploration and exploitation offshore and deep-water oil rigs rather than the currently employed shallow-water structures.

PVEP had a total revenue of VND18.97 trillion ($998.4 million) in the first six months of this year, up 36 per cent on the same period last year. — VNS

Tags: Block SK305 field offshore, Malaysian offshore oil, Petro Vietnam