3:26:28 PM | 7/8/2005
PetroVietnam, KNOC Sign Contract for Gas Exploitation
Vietnam Oil and Gas Corporation (PetroVietnam) and the Korean National Oil Corporation (KNOC) last week signed a contract to exploit Block 11-2 of the Rong Doi (Twin Dragon) and Rong Doi Tay (Twin Dragon West) fields in the Nam Con Son Basin off southern Ba Ria - Vung Tau province.
Under the production sharing contract, they will invest US$300 million to put the fields into operation in October 2006, including construction of an offshore production platform, floating storage facility, a pipeline and the drilling of necessary gas wells.
KNOC will assign a 25 per cent total interest to PetroVietnam Exploration and Production Company (PVEP) to jointly develop the natural gas reserves in Block 11-2 that is expected to supply to PetroVietnam around 130 million cu. m of gas per day for 23 years from the first gas deliveries, starting next year.
Total reserve estimates for this block are 856 billion cubic meters of gas and 22.8 million barrels of oil. The gas will be used for electricity generation and fertiliser production in Phu My Complex.
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