PetroVietnam Assumes Operatorship of Dai Hung Field

PetroVietnam's Russian partner in the Vietsovepetro joint venture, Zarubezneft, is exiting from Dai Hung Field located offshore Vietnam. Dinh Huu Loc, director of the International Relations Department PetroVietnam said Zarubezneft's withdrawal was based on a decision by the Russian firm that the field had poor prospects. The field is located approximately 200 kilometers south of Ba Ria Vung Tau province and was set up as an independent investment of Vietsovpetro. "Both sides agreed to invest around $200 million in (Dai Hung), and now PetroVietnam will continue to operate it alone," Loc said. The Dai Hung field has produced approximately 250,000 tons of crude per year since 2000. "We haven't completed all the exploration work, and we expect the oil field will supply a much higher output later," Loc said. Vietsovpetro is a 50/50 joint venture between PetroVietnam and Zarubezhneft.