PetroVietnam Partners with KNOC in Block 11-2

PetroVietnam will take a 25% stake in a joint venture with Korea National Oil Corp. which will be set up to produce oil and gas in an offshore field, a PetroVietnam official said Wednesday.

In 2002, PetroVietnam and KNOC reached a deal for starting exploration in Block 11-2, located 300 kilometers south of Ba Ria-Vung Tau province, the official said.

In March 2003, KNOC said it found recoverable reserves of about 34 billion cubic meters of natural gas and 38 million barrels of condensate in the block.

"We heard that KNOC had said it would like to invest about $300 million for this project, but PetroVietnam will need to make some final decisions before both sides can set up a joint venture for Block 11-2," he said.

He declined to give further details about the equity value or date for setting up the joint venture, but added that "we expect production (from the block) to start from mid-2005.