Serica farms out Vietnam interest

Serica has reached agreement with Australian Worldwide Exploration (AWE) on the terms of a farm-out of part of Serica's interest in the block 06/94 Production Sharing Contract (PSC) offshore Vietnam.

Offshore staff

LONDON -- Serica has reached agreement with Australian Worldwide Exploration (AWE) on the terms of a farm-out of part of Serica's interest in the block 06/94 Production Sharing Contract (PSC) offshore Vietnam. The agreement is subject to the waiver of a pre-emptive right held by PetroVietnam, the Vietnamese State oil and gas company, and to the approval of the government of Vietnam.

Under the agreement, AWE will bear Serica's 33.33% share of the costs of the three-well drilling program in the PSC, subject to a financial cap, in order to earn an interest of 23.33% in the PSC, with Serica retaining a 10% interest.

The drilling rigOcean General is expected to arrive on location in block 06/94 for the Tuong Vi exploration well in June 2009. The second and third exploration wells on the block are not expected to be drilled until 2010.

The company also reports that a 58-km (36-mi) offshore and onshore pipeline has been laid and tested in the Kambuna field development (Serica 50%). The offshore platform topsides were installed this month and offshore hook-up and commissioning are in progress. Work continues with the construction of the onshore gas reception facility and first gas is scheduled for June.

03/23/2009

More in Company News