Talisman, consortium partners awarded Block 46/02 off Viet Nam

May 15, 2002
A consortium including units of Talisman Energy Inc., Calgary, Petronas Carigali Sdn. Bhd., and PetroVietnam has been awarded exploration Block 46/02 off Viet Nam, Talisman announced.

By OGJ editors
HOUSTON, May 15 -- A consortium including units of Talisman Energy Inc., Calgary, Petronas Carigali Sdn. Bhd., and PetroVietnam has been awarded exploration Block 46/02 off Viet Nam, Talisman announced.

Talisman Vietnam Ltd. and Petronas Carigali Overseas Sdn. Bhd. each have a 30% stake in the consortium, while PetroVietnam Exploration & Production has 40% interest.

Petronas is Malaysia's state-owned oil company, while PetroVietnam is Viet Nam's state-owned oil company.

The Viet Nam government has yet to grant approval to the award, which also remains subject to the finalization of a petroleum contract and joint operating arrangement.

"We are excited about the oil and gas potential of the area," said Tailsman Pres. and CEO Jim Buckee. "Block 46/02 is located adjacent . . . our ongoing development in the Malaysia-Vietnam PM-3 Commercial Arrangement Area [PM-3 CAA] and is interpreted to contain an extension to the PM-3 CAA play. The block offers the potential for a number of small field discoveries, which can be quickly and economically tied back to the PM-3 CAA facilities."

Block 46/02 covers 3 million acres and is 100 miles off the southern coast of Viet Nam adjacent the PM-3 CAA block boundary in 120-150 ft of water. A number of oil and gas discoveries, made by the previous operator of the block, flowed at rates up to 5,500 b/d of oil and 26 MMcfd of low-carbon dioxide content natural gas, Talisman said.

The consortium's commitment on Block 46/02 includes conducting a 3D seismic survey and drilling four wells during a 3-year exploration phase.