British and Japanese operators are poised for exploration campaigns off southern Viet Nam.
A 50-50 partnership of Lasmo International Ltd., London, and C. Itoh Exploration Co. of Japan signed a heads of agreement covering Block 04-2, and AEDC Vietnam Oil Development Co. and Teikoku Oil Co. acquired Block 05-3 under a production sharing contract. AEDC is a unit of AOC Energy Development Co., a subsidiary of Arabian Oil Co. (AOC) of Japan.
Both tracts are in the Con Son basin in the South China Sea.
Lasmo said its tract lies in "a highly prospective area." The company considers the area to be underexplored, with several large undrilled prospects that have significant reserve potential. Seismic data acquired when the Soviet Union was involved in the region is sufficient to reveal a number of attractive features on the block, said Brian Lee, Lasmo exploration manager.
Site is 15 km north of 500 million bbl Dai Hung (Big Bear) oil field for which state owned Petrovietnam is evaluating bids to place on production.
A unit of the Royal Dutch/Shell Group acquired a west offset, Block 10, early this year.
The Lasmo-C. Itoh acreage is among five blocks offered in Vietnam's second round of offshore licensing. All are in the area that once was reserved entirely for Vietsovpetro, a partnership of Petrovietnam and the former Soviet Union.
Lasmo will operate the block.
Signing of a production sharing contract likely will take place in late August or early September.
Taking into account the need to acquire further seismic data, it likely will be 1994 before the first wildcat can be drilled. A drilling commitment is part of the present agreement, but Lasmo declined to reveal its extent until the production sharing contract is signed.
The AEDC-Teikoku combine hopes to complete seismic surveys on Block 05-3 by yearend and drill two wildcats next year, Japan Economic Newswire reported.
The block, covering about 2,500 sq km in 80-180 m of water, is a south offset to this block holding Petrovietnam's Dai Hung field.
Tokyo's Kyodo News Service quoted AOC and Teikoku officials as saying Dai Hung field holds 400 million bbl of reserves. An Oil & Gas journal roundup of Indochina exploration and development earlier listed reserves at 600 million bbl for Dai Hung and 500 million bbl for Bach Ho (OGJ, May 18, p. 19).
AEDC, with a 55% interest, will operate Block 05-3. Teikoku holds the remaining interest.
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