Idemitsu Oil and Gas Co. Ltd. (Idemitsu), Nippon Oil Exploration Ltd. (Nippon), and Teikoku Oil Co. Ltd. (Teikoku) jointly signed a production sharing contract with Petrovietnam for blocks 05-1(b) and 05-1(c) offshore southern Vietnam on Oct. 28, 2004. In both blocks, the working interest of is split three ways: Idemitsu holds 35%, Nippon 35%, and Teikoku 30%.
The blocks are 300 km southeast of Ho Chi Minh City in the South China Sea. Producing fields such as the Dai Hung oil field and Hai Thach gas field are nearby. The blocks cover an area of about 1,570 sq km in 100-200 m of water.
The companies plan to spend $11.5 million on exploration including a seismic survey and the one exploration well in the first three-year exploration period October 2004-October 2007. The exploration drilling is planned for 2006. Assuming the well is successful Petrovietnam can back in for a 20% interest.
Teikoku plans to establish a wholly owned subsidiary, Teikoku Oil (Con Son) Co. Ltd. and promote this project.