KNOC and Petrovietnam Expect to Sign Gas Deal Soon
KNOC and Petrovietnam are close to finalizing a gas supply deal that would supply gas to South Korea from Vietnam's Rong Doi field. The final contract would be signed later this year. KNOC and Petrovietnam recently agreed on core issues for the gas supply from block 11-2, 170 miles from Vung Tau port, south of Ho Chi Minh City. The final contract would be executed later this year, around October, after sorting out details following the initial agreement, which should be reached within a month.
KNOC is negotiating a behalf of a South Korean consortium in which it holds a 49 percent stake. Other partners in the consortium include Daewoo International, LG International, Samsung Corp and Hyundai Corp.
If the deal is signed in 2002, the gas would go onstream between late 2004 and early 2005 in the block which is estimated to have reserves of 1.2 trillion cubic feet with 900 billion cubic feet recoverable. Plans are to use the Nam Con Son pipeline operated by BP. KNOC was granted a 100 percent gas development right from the Vietnamese government in 1992.
The consortium increased its stake in the block to 100 percent from 55 percent previously after it acquired a 45 percent stake held by ExxonMobil in February.