Vietsovpetro, an oil and gas joint venture company between Vietnam and Russia, began construction and installation of the two oil rigs BK-14 and BK-15 at Vietsovpetro Port, in southern Ba Ria - Vung Tau Province last week.
The oil rigs have a combined investment capital of US $550 million and are located in the southern and northeastern quadrants of the Bach Ho Oilfield, one of Vietnam's largest oil fields.
The Oil and Gas Construction, Installation and Repair Company -- an affiliate of Vietsovpetro -- was assigned to undertake the project.
Do Van Phuc, director of the firm said his company would complete the project soon.
The new oil rigs were expected to be put into operation this year in order to increase output from the Bach Ho Oilfield. Vietsovpetro had managed to boost investment and operations in an effort to increase its total output this year, it said.
Last month, Vietsovpetro pumped its first oil from Well 2X, at Block 09-1 in the Nam Rong - Doi Moi Oilfield, and from another well in the Dong Rong Oilfield. The two wells have a total output estimated at 8,440 barrels per day.
Vietsovpetro director general Nguyen Huu Tuyen said operation of the new wells would provide a solid foundation for the joint venture to gradually increase its output from this year onwards. At the same time, it demonstrated Vietsovpetro's potential and capacity in the oil sector, he said.
The firm targeted extraction of 6-6.2 million tonnes of crude oil and 595 million cubic metres of gas this year. With an estimated average price of US $495 per tonne, its turnover would be more than US $3 billion if the targets are reached.
(C) 2010 Asia Pulse Pte Ltd.
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