PetroVietnam talks development with ExxonMobil

August 27, 2014

EMEPVL team in Hanoi, led by President Russ Berkoben (at right)State-run PetroVietnam is in talks with ExxonMobil over a huge natural gas project off Vietnam’s central coast, its chief executive officer revealed in a Bloomberg interview published Friday.

The companies may reach an agreement on a “US$10 billion natural gas and power project” by next year, PetroVietnam CEO Do Van Hau told the New York-based media company.

Vietnam's offshore gas reserves are the fourth largest in east Asia, and ExxonMobil's interest is based on the large natural gas discoveries it made offshore, in the Phu Khanh basin, in 2012.

The first phase of the project would pipe gas from the field to a processing station. The gas would be used to fuel a 2500MW power plant, one of Vietnam's largest.

Hau told Bloomberg that Exxon Mobil is interested in investing in the field, the pipeline and processing plant, although PetroVietnam will be the main investor in the power plant. The total investment for the whole project is “somewhere around US$10 billion,” he said.

XOM discoveries

ExxonMobil's main presence in Vietnam is through ExxonMobil Exploration and Production Vietnam Ltd. (EMEPVL), which has a venture office in Hanoi to conduct oil and gas exploration activities, including the acquisition of seismic data and the drilling of exploratory wells. Photo at right of EMEPVL President and GM Russ Berkoben (right) with his team in Hanoi.

ExxonMobil acquired 100% interest in Blocks 117, 118, and 119 offshore Da Nang on the central Vietnam coast from BP in 2009.

In 2010, ExxonMobil chartered the Seadrill's West Aquarius semisubmersible rig for a three-well exploration drilling campaign on Block 118.

The first well, CA Voi Xanh-1X, was dry but the second well, CA Voi Xanh-X2, was a discovery.

ExxonMobil drilled the third well, 118 Ca Voi Xanh-3X, in 2Q 2012, and it was also a discovery.

In addition to the Da Nang blocks, ExxonMobil operates four blocks in the Vung May area off southern Vietnam



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