Offshore oil field found in northern Vietnam
HANOI - An offshore oil field was found for the first time in northern Vietnam about 70 kilometers east of Hai Phong, according to a press conference held by a partnership of oil companies on Wednesday. The partners, led by Petronas Carigali Overseas of Malaysia, American Technology Inc Petroleum (ATI), the Singapore Petroleum Company and the Petroleum Investment and Development Company of Vietnam, began drilling on the Yen Tu field on September 17 this year.
Many companies have been exploring in Yen Tu for oil and natural gas. Although natural gas has already been found, this latest discovery was the first time oil has been struck. It also marks the first oil strike in the waters of northern Vietnam, said ATI general director Dinh Duc Huu. The partnership discovered the oil in the 14,000 square kilometer area of Blocks 102 and 106 in the Yen Tu field. These two blocks are expected to yield between 700 million and 800 million barrels of oil until they run dry, with Block 106 alone expected to generate about 600 million barrels.
An estimated US$20 million has been invested in exploration activities so far, according to the general director, and about $100 million more must be spent before the first barrel of crude is collected. It typically takes between two and three years to begin producing oil from a newly discovered site. For now, the partners will begin discussions on how to exploit the area most effectively.
Vietnam produces an average of 83 million barrels of crude oil per year, with most coming from oil fields in the south of the country.
Vietnam News Agency - October 22, 2004
Venture finds oil, gas in North Vietnam
A joint venture has found new offshore oil and gas reserves in northern Vietnam, but much more work is needed before any commercial drilling can start, a company official said Wednesday. The joint venture finished drilling an exploration well last month and estimated preliminary reserves at 81 million barrels, said Dinh Duc Huu, director of American Technology Inc. Petroleum, one of four partners involved in the project.
The well is located about 43 miles from Haiphong port with the light, sweet crude at a drilling depth of about 1.2 miles, Huu said during a news conference announcing the find. He made a preliminary estimate that one of the two blocks, which covers 40,000 square kilometers, could hold reserves of 700 million to 800 million barrels of crude and 1.23 trillion cubic feet of natural gas.
The joint venture, which started operations in mid-2000, has so far spent about $20 million on exploration. Huu, a Vietnamese-American, said another $100 million is needed over the next two to three years for further drilling activities and production facilities before the oil could be removed. Other partners in the joint venture include Malaysia's Petronas Carigali Sdn. Bhd., Vietnam's Petroleum Investment & Development Co. and Singapore Petroleum Co.
Huu declined to give details on the ownership stakes held by the joint venture partners, but said Petronas Carigali owns the largest portion.
The Associated Press - October 20, 2004
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