KNOC Finds New Oil Reservoir off Southern Vietnam

KNOC Finds New Oil Reservoir off Southern Vietnam

The Korea National Oil Corporation (KNOC) announced yesterday it discovered new oil in the Rong Tre (Young Dragon) prospect, off the shore of southern Ba Ria-Vung Tau province.

KNOC is the operator of Block 11-2 and holds a 75 per cent participating interest on behalf of itself and a Korean consortium of investors, including Daesung, Daewoo and Hyundai; and PetroVietnam Exploration and Production Company (PVEP) holds the remaining 25 per cent.

KNOC now produces oil from the site at a rate of 3,037 barrels per day and estimates a total reserve of 40 million barrels, enough to justify commercial development. The oil produced is light, high quality and without harmful elements such as hydrogen sulphide (H2S).

The oil discovery in Rong Tre is significant for future exploration efforts in the Nam Con Son Basin. KNOC is scheduled to drill another exploration well next week.

KNOC shares another successful block, operated by the Cuu Long Joint Operating Company (CLJOC), with SK Corp, PVEP, ConocoPhillips and Geopetrol.

The block produces 75,000 barrels of oil per day. The CLJOC is developing other prospects in the area: It will drill two exploration wells this month.

• VNS