LONDON – SOCO International has concluded negotiations for a 70% interest in a production-sharing contract (PSC) over two blocks offshore central Vietnam.
Blocks 125 and 126 are in moderate to deep waters in the Phu Khanh basin, north of the oil-prone Cuu Long basin, with numerous structural and stratigraphic plays observed on available 2D seismic.
SOCO believes there is potential for source, expulsion, and migration of oil with various reservoir and seal intervals likely.
The company anticipates approval soon from the Vietnamese authorities. Other parties in the PSC are SOVICO Holdings Co. and PetroVietnam.
SOCO is also a partner at the TGT field in the Cuu Long basin, operated by Hoang Long Joint Operating Co. (HLJOC), a new program of infill drilling started in March 2017.
The TGT-30P infill well on the H1-wellhead platform (WHP) is currently producing around 2,500 boe/d with 40% water cut as expected.
A second infill well, TGT-29P, recently completed on the southern H5-WHP, is currently undergoing production clean-up procedures ahead of a tie-in to the production system.
Drilling of the high angle and long reach TGT-14X step-out appraisal well on the H5 South fault block, spudded initially during a 2015 drilling campaign, has reached the reservoir.
Construction of new processing equipment for the H1-WHP is under way following approval of theTGT full field development plan by the Vietnamese authorities in February.
This equipment will handle an additional 90,000 b/d of liquids with a water handling capacity of up to 65,000 b/d.
Doubling the liquids handling capacity of the entire system to around 180,000 b/d should permit higher levels of oil production at the same (or higher) water cut rate than was previously possible.