Vietnam National Industry - Energy Group (Petrovietnam) and its joint venture partners officially signed the Product Sharing Contract (PSC) for Block 15-1 in the southern continental shelf of Vietnam.
Block 15-1 is one of the oil and gas blocks of special strategic significance for the exploration and exploitation activities of Petrovietnam and the Oil and Gas Exploration and Production Corporation (PVEP).
Initially, Block 15-1 was operated under a joint venture model, bringing together five international and domestic partners, including PVEP, ConocoPhillips Cuu Long (UK), KNOC and SK (Korea) and Geopetrol (Monaco).
Later, Perenco (France - UK) took over the capital of ConocoPhillips to continue its operating role.
Under the form of joint operation through Cuu Long Joint Operating Company (Cuu Long JOC), this is one of the rare ‘large-scale’ joint ventures in the Vietnamese oil and gas industry.
In the newly signed PSC, PVEP holds 59%, Perenco holds 19.8%, KNOC holds 11.4%, SK holds 7.2% and Geopetrol holds 2.6%.
The signing ceremony officially kicks off Phase 2B of the White Lion Project, a major $1.3 billion investment, said a Perenco representative.
When completed, the project will supply 125 billion standard cubic feet of natural gas per day to the domestic market.
Block 15-1 is located in the Cuu Long basin in the southern mainland of Vietnam, including the oil and gas fields being exploited: Black Lion, Golden Lion, Brown Lion and White Lion.
Since its discovery and development, Block 15-1 has continuously contributed large production output, high economic efficiency and played a role as one of the pillars of national oil and gas production over the past many years.
In 2003, the first oil was extracted from the Black Lion field, quickly turning this area into one of the bright spots in Vietnam's offshore oil and gas production, with estimated reserves of about 600 million barrels of oil, second only to the White Tiger field.
“In the coming time, the demand for energy for development is very large, clearly shown in the recent Adjustment of the 13th Power Plan. The early and highly effective implementation of key energy projects, oil and gas projects, and important oil and gas contracts, such as PSC Block 15-1 today, plays a very important role in contributing to achieving the goals of developing the national oil and gas industry, ensuring energy security and socio-economic development of the country,” said Bui Thanh Son, Deputy Prime Minister.
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