Vietsovpetro Eyes Offshore, Deepwater Activities
Vietsovpetro will focus its exploration activities in offshore and deepwater areas to boost reserves, the company stated in a press release.
The joint venture exploration company, between PetroVietnam (Vietnam’s national oil and gas group) and Zarubezhneft (Russia’s state-controlled oil company), will focus on offshore and deepwater activities to offset its declining onshore assets. Vietsovpetro’s plan to raise oil equivalent reserves is due to the company’s low drilling success rate (20 percent) and Bach Ho field’s decline in production, the company said.
“Exploration in offshore and deepwater areas is vital for the oil and gas sector to meet the country’s fast-growing energy demand,” said Vietsovpetro Deputy General Director Le Viet Hai.
The joint venture plans to achieve an annual yield of 6 million tons for crude oil, 49 billion cubic feet of natural gas and 270,000 tons of condensate in the next couple of years, the company added. The JV, which has exploited 190 million tons of crude oil, recently agreed to extends its cooperation for an additional 20 years. The agreement ends in 2030.
The company has four producing blocks and has signed contracts to explore and produce oil and gas overseas, including in Tunisia, Myanmar, Argentina and Bolivia.
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