Russia quits Vietnam oilfield
HANOI - Russia's state oil firm Zarubezhneft has officially withdrawn from the Dai Hung (Big Bear) oilfield off Vietnam's southern
coast, a Vietnamese official at the field's operator said. After the Russian withdrawal, state oil monopoly Petrovietnam would be the
solo explorer of the Dai Hung field in block 05-1, about 260 kilometers (160 miles) off Ba Ria-Vung Tau province, the official from
Vietsovpetro told Reuters on Wednesday.
It was the second Russian pullout from a Vietnam energy project in seven months, and the third withdrawal of an overseas partner
from Dai Hung since 1997. "The operation (at Dai Hung) has been normal at the field even though the Russian partner has asked to
stop its participation from June 1," the Vietsovpetro official said.
"Vietsovpetro's operation has nothing to do with the withdrawal, as we have been hired to operate the field." He said that
Zarubezhneft and Petrovietnam were now in talks to end their agreement. "It's not a secret that since a party could not find an
economical benefit, it would go," he added.
Russian news agency Interfax had quoted a Zarubezhneft statement in May as saying results of drilling and testing at a new well in
the field showed no significant reserve increase, making the operation unprofitable.
Production at the field had been slated to last 25 years. Traders had estimated the field's output at between 2,000 and 4,000 barrels
per day. Industry sources put the field reserves at between 30-100 million barrels.
Vietnam's state oil exporter Petechim normally offers Dai Hung's medium sweet crude about once every six months as dwindling
production limits supplies.
Zarubezhneft and Petrovietnam, each with a 50 percent stake in Vietsovpetro, started tapping the Dai Hung oilfield after Malaysian
state-owned Petronas withdrew in February 1999. Australia's BHP Petroleum pulled out of Dai Hung in 1997, also saying the field
was not profitable.
Last December, another 50-50 Russian joint venture, VietRoss, abandoned the $1.3 billion Dung Quat oil refinery, leaving
Petrovietnam to push ahead on its own.
Reuters - July 2, 2003
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