BP increases ownership of Nam Con Son gas fields off Viet Nam

Jan. 3, 2002
BP PLC has bought Statoil ASA's share in two gas-producing blocks off Viet Nam. BP said its shares in the Nam Con Son basin have increased to 35% from 26.6% for Block 6/1 and to 100% from 66.6% in Block 5/2.

By the OGJ Online Staff

LONDON, Jan. 3 -- BP PLC has bought Statoil ASA's stakes in two gas-producing blocks off Viet Nam.

BP said its shares in the Nam Con Son basin have increased to 35% from 26.6% for Block 6/1 and to 100% from 66.6% in Block 5/2.

BP said that after Statoil offered its equity shares in the market, it exercised its right to acquire the shares by matching the high bids.

BP is the operator of the $1.3 billion Nam Con Son integrated gas-to-power project under construction off the southern province of Ba Ria-Vung Tau.

The project involves the development of the Lan Tay and Lan Do gas fields in block 6/1, construction of a 400-km pipeline to bring gas ashore, and a gas-fired power station.

The Nam Con Son gas project is the country's largest foreign investment and its first dedicated gas-to-power project. The project centers on the development of 2 tcf of gas to supply three generating plants in the Ho Chi Minh City area, meeting 40% of the nation's electricity demand.

The project includes a steel production platform and an onshore gas processing terminal. The pipeline will accommodate future gas supplies from the Nam Con Son basin, including Hai Thach field, discovered by BP in 1995.

The two gas fields, Lan Tay and Lan Do, were discovered in 1992-93. BP is operator with 26.67%, India's Oil & Natural Gas Corp. holds 45%, and Statoil had held 13.33%. PetroVietnam has the remaining 15%.