Mitsui Oil to Develop Vietnam Offshore Gas Area with Partners

TOKYO (Dow Jones Newswires), Jul. 24, 2009

Mitsui Oil Exploration Co. Friday said it agreed with partners -- Chevron Corp., state-owned Vietnam Oil and Gas Group, or PetroVietnam, and Thailand's PTT Exploration & Production PCL -- to develop and sell natural gas from southwest Vietnam.

The area consists of two adjoining blocks -- B&48/95 and 52/97 -- and a section carved out from them called the joint development area. These companies have been exploring there and have confirmed gas reserves of 4.2 trillion cubic feet.

The agreement signed in Hanoi is about front-end engineering work and design, a Mitsui Oil Exploration spokesman said. The details of the plan weren't disclosed.

The partners will work out gas sales contracts with users in Vietnam, including existing and planned gas-fired power plants. In the $4-billion plan, the reserve will be developed and the gas will be sold through a pipeline.

"If everything goes well, we will be able to start production as early as 2014," the spokesman said.

The four companies hold varying stakes in both the blocks and the development area, the spokesman said.  

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