BHP TO EXPLORE BLOCKS OFF CENTRAL VIET NAM

BHP Petroleum Pty. Ltd. has signed a 25 year production sharing contract covering a 19,000 sq km permit off Central Viet Nam. Seismic surveys under the contract are to begin in April, with the first wildcat to spud in 1992. BHP concluded its deal with state owned PetroVietnam after 12 months of negotiations. BHP first nominated the acreage, Blocks 120 and 121, under a protocol arranged in December 1989. It is believed to be the 10th production sharing contract Viet Nam has signed with foreign

Jan. 21, 1991

2 min read

BHP Petroleum Pty. Ltd. has signed a 25 year production sharing contract covering a 19,000 sq km permit off Central Viet Nam.

Seismic surveys under the contract are to begin in April, with the first wildcat to spud in 1992.

BHP concluded its deal with state owned PetroVietnam after 12 months of negotiations.

BHP first nominated the acreage, Blocks 120 and 121, under a protocol arranged in December 1989.

It is believed to be the 10th production sharing contract Viet Nam has signed with foreign companies since May 1988.

BHP will assume full exploration costs covering the first 5 years of the contract. In the event of a discovery, BHP will be reimbursed, and the production sharing agreement will take effect. There has been no drilling on the BHP acreage.

The company has opened an office in Ho Chi Minh City.

VIET NAM OIL STATUS

Viet Nam's only commercial oil production is from Bach Ho field off its southern coast.

Operated by the Soviet-Vietnamese joint venture Vietpetro, the field reportedly produced about 54,000 b/d in 1990. According to Soviet press reports, Bach Ho production topped 60,000 b/d in 1990 (OGJ, Dec. 24, 1990, p. 28).

A joint venture of Enterprise Oil plc and Cie. Europeene des Petroles drilled a 300 b/d discovery off Viet Nam's southern coast late last year (OGJ, Nov. 26, 1990, p. 38).