Cuu Long talks pick up pace
The owners of two separate oilfield discoveries in Vietnam's offshore Cuu
Long basin are making progress in negotiations on a unitised field
development.
The Hoang Long joint operating company owns the Te Giac Trang (TGT) or White
Rhinoceros oilfield in Block 16-1 while the Thang Long joint operating
company owns the Hai Su Trang (HST) and Hai Su Den (HSD) oil discoveries in
neighbouring Block 15-2.
The two groups have been locked in unitisation discussions for months after it
was realised that the TGT field flowed into Block 15-2.
UK company Soco - a partner in the Hoang Long group - said yesterday that "despite
delays attributable to the unitisation implications of our...TGT field on
Block 16-1 offshore Vietnam, we fully expect an official declaration of
commerciality before the end of the first half of 2008".
Soco is also a co-venturer in the Ca Ngu Vang (CNV) oil development due on
stream late in the second quarter or early third quarter of this year.
Soco said development of the TGT field "was less seamless than that with
CNV. Our expectations that a declaration of commerciality by the government
of Vietnam could be achieved last year fell short primarily due to a small
discovery on an adjoining block, which suggested an extension of the TGT
field and brought unitisation implications".
Soco said many of the equity implications have been agreed with the Thang Long
consortium and an initial reserve allocation report, the first step for
agreeing commerciality, has been filed with PetroVietnam.
The Hoang Long joint operating company comprises PetroVietnam Exploration &
Production (41%), Soco (30.5%) and Thailand's PTT Exploration &
Production (28.5%). The TGT field has recoverable oil reserves of 300
million barrels.
The Thang Long partners are Canada's Talisman Energy (60%) and PetroVietnam
Exploration & Production (40%).
27 March 2008 01:31 GMT
| last updated:
27 March 2008 07:30 GMT
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