Petrovietnam, Petronas sign joint exploration deal

Petrovietnam has signed a contract with Malaysia's Petronas Carigali Overseas to drill for oil and natural gas in fields in the Gulf of Tonkin.

Eric Watkins
Senior Correspondent

LOS ANGELES, June 26 -- Petrovietnam has signed a contract with Malaysia's Petronas Carigali Overseas to drill for oil and natural gas in fields in the Gulf of Tonkin.

The fields lay 100 km offshore and cover nearly 12,000 sq km. They hold collective reserves of 50 billion cu m of gas and 45 million bbl of condensate, Petrovietnam said.

Under terms of the contract, the two companies will invest $57.7 million in exploration during the first 4 years, with Petrovietnam subsidiary Petrovietnam Exploration Group contributing 55%, and Petronas 45%.

Contact Eric Watkins at hippalus@yahoo.com.

More in Exploration & Development