International oil and gas explorer SOCO has agreed a Production Sharing Agreement (“PSC”) for two blocks offshore Vietnam.
The deal, struck between PetroVietnam, SOVICO Holdings and SOCO, was formally signed on October 27.
SOCO will take a 70% operated interest over the two blocks.
Blocks 125 and 126 are located in moderate to deep water in the Phu Khanh Basin, offshore central Vietnam, to the north of the Cuu Long Basin, and have multiple structural and stratigraphic plays observed on the available seismic data.
The signing ceremony in Hanoi was attended by SOCO’s President and Chief Executive, Ed Story.
Speaking after the ceremony, Story said: “SOCO began its serious evaluation of the exploration potential of Blocks 125 & 126 in the Phu Khanh Basin in 2010, following an interest that preceded that time by many years.
“We are delighted that our tenacity has successfully delivered two new blocks; along with partnership with one of Vietnam’s preeminent conglomerates, SOVICO Holdings.”
A Memorandum of Understanding (MoU) was signed by the partners in 2015 and the final PSC was approved by the Vietnamese Government and Prime Minister in August 2017.
SOCO’s capital expenditure for 2017 includes the purchase of existing seismic data.
Initial exploration activities will include reprocessing and interpretation of seismic data, with a view to drilling the first exploration well potentially as early as 2021.
SOCO has been present in Vietnam for almost two decades and has invested over $1 billion into its oil and gas projects located offshore southern Vietnam, making SOCO one of the largest British investors in Vietnam.
Recommended for you
