PetroVietnam buys Chevron Vietnam

June 18, 2015

PetroVietnam has taken over Chevron subsidiaries and assets in Vietnam, following government approval.

This will see the Vietnamese oil major own Chevron Vietnam (Block B), Chevron Vietnam (Block 52) and Chevron Southwest Vietnam Pipeline, plus gain operatorship for exploration blocks located in the country's continental shelf.

Chevron Vietnam (Block B) holds 42.38 % operating interest in the PSC covering Blocks B and 48/95 and Chevron Vietnam (Block 52) holds 43.40% operating interest in the PSC covering Block 52/97.

Chevron Southwest Vietnam Pipeline holds a 28.7% working interest in a pipeline project that would deliver natural gas from offshore to gas users in Vietnam.

Nguyen Xuan Son, chairman of the members’ council of PetroVietnam said this acquisition would facilitate the acceleration of field development and the implementation of projects to make gas quickly available to serve the development needs of the national economy.

“The Block B gas project is PetroVietnam’s main oil and gas project.  The project is of major significance contributing to ensure the energy security of the country and promoting the socioeconomic development of the region,” he said.

Blocks B, 48/95 and 52/97 cover 3200sq km of the Malay Tho Chu basin, southwest of Vietnam in water depths ranging from 60-80m.  Gas estimates reviewed by Vietnamese authorities suggest gross gas at 6.008 Tcf and recoverable gas reserves at 3.78 Tcf.

The Block B O Mon project is designed to transport gas from Block B, 48/95 and 52/97 in waters southwest of Vietnam to the O Mon Kien Giang power plant hub, and to supplement gas supply to the Ca Mau gas fertilizer hub. Total investment for field development and construction of the power plant project is estimated to exceed US$10 billion.

Also this month, PetroVietnam expanded its cooperation with Kazakhstan through an agreement to jointly explore for oil and gas with Kaztransgas. This also includes PetroVietnam’s participation to complete the Kansu project and other oil and gas service activities in Kazakhstan through the provision of drilling services, gas exploration and transportation for Kazakhstan’s oil and gas companies.

Moreover, since its cooperation with Russia, the group is now promoting collaborations with Azerbaijan and Uzebekistan as well. 

Image: PetroVietnam and Chevron signing of agreement / PetroVietnam



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