PVN and its Partners signed a Petroleum Sharing Contract (PSC)
14:03 | 14/08/2015
PVN, Idemitsu and Sumitomo leaders at the signing contract.
According to PVN, 39 and 40/02 lots are located on offshore southwestern continental shelf under the Ma Lai -Tho Chu sedimentary basin edge with an about 11,630 km2 area, 150 km far from ashore and an about 50m water depth. These lots belong to the list of Vietnamese government investment incentive projects .
In 2011, PVN and JOGMEC (Japan National Oil & Gas and Metals Corporation) signed an Agreement on Joint Study of Evaluating Petroleum Potential of 39 and 40/02 Lots..
Within two years of implementing the Agreement, JOGMEC conducted explosive collection, treatment and explicit interpretation for a 4,510 km new 2D seismic line and study of evaluating the petroleum potential of the 39 and 40/02 Lots. On the basis of studying results consistent with the provisions of the Agreement, JOGMEC appointed Idemitsu Company to negotiate with PVN for participating in the project. For its part, Idemitsu agreed with Sumitomo to share interests involved in the project.
Recently, within the framework of Sea Economic Conference, the Fifth Mekong Economy Forum, PVN’Leaders had the working meetings with Japanese partners in petroleum search, exploration, and processing, as Idemitsu Kosan, MOECO, Mitsui Chemicals, JGC... in order to promote implementation of existing projects and orient strengthening cooperation in coming time.
In the present of Prime Minister Nguyen Tan Dung, leaders of Government Office and Ministries of Foreign Affairs, Industry and Trade, Planning and Investment and Extraordinary and Plenipotentiary Ambassador of Vietnam in Japan, PVN and Japanese consortium contractors (Idemitsu Kosan Co. and Sumitomo Corporation) signed an Agreement on the plan to sign and implement PSC of the 39 & 40/02 Lots on offshore Vietnam continental shelf.
Speaking at the signing ceremony, the Acting Chairman of Member Council, General Director of PVN Nguyen Quoc Khanh high appreciated the excessive interest of Japanese partners in long-term cooperation with PetroVietnam, and stressed: "Through oil and gas projects you cooperated and cooperates with us, your commitments to the amount of work and financial expenditure for conducting petroleum activities at 39 and 40/02 lots and the PSC signing have the more showed the positive efforts of Japanese partners to expand the long-term cooperation and investment of Japan in Vietnam.
After the negotiation process, on the basis of the cooperative spirit between the parties, PetroVietnam and the Japanese partners have reached an agreement on the economic, technical and commercial conditions of 39&40/02 lots PSC, accordingly, Idemitsu as the Project Operator holds 75% participation interest, Sumitomo holds 25%. PetroVietnam has the right to participate up to 30% of the 100% participation interest of the Contractor when having the first commercial discovery in area of the contract (back-in right).