Petrovietnam extended E&P bidding deadline

Petrovietnam has extended deadline for submission of bids on blocks 122-130 Phu Khanh basin, offshore Vietnam from March 31 to May 4, 2005. This company had announced and invited oil and gas companies to participate in Vietnam's 2004 Licensing Round on Oc. 1, 2004.

About 15 firms are interested in the nine blocks – from block 122 to block 130 – in Phu Khanh basin, a deepwater basin offshore central Vietnam.

The licensing round covers nine blocks (named 122-130) in Phu Khanh basin, offshore central Vietnam with an average 7,000 sq. km per block. Database of the area consists of around 17,000 km 2D seismic, of which approximately 7,000 km acquired/processed in 2003 and another 7,000 km acquired/reprocessed in 1993 shall be available for sale.

Phu Khanh basin is the deepwater basin along the southern central coastline of Vietnam with various water depths from 50-2,500 m and high sediment thickness up to 8,000 m. Recently, PetroVietnam has carried out a seismic program to infill existing coarse coverage. PetroVietnam hopes that in the light of recent discoveries in the country and in the region as well as the better legal and fiscal terms offered by the government, the licensing round will be more attractive to the international oil and gas investors.

An official from PetroVietnam said Vietnam wants to raise crude oil output in the coming year, but because its production capacity is limited due to a lack of technology and investment, the company will only be able to produce about 20 million tons of crude oil (annually) in the coming years.

He continued to say that PetroVietnam hopes new investors in the Phu Khanh basin will bring new supplies in the next few years, because the area has high potential, according to the company's studies so far.

Vietnam is estimated to have up to 4.5 billion tons of oil reserves and 1,300 bcm of natural gas, the industry ministry's figures show.

03-28-05