Talisman desires Vietnam to be a key market in Asia

Hai Su Trang is an exploration and mining project of the Contract Block 15-2/01,  headed by TLJOC venture company with the participation of the Talisman-Canada (60%) and PVEP- Vietnam (40%).

TALISMAN ENERGY

Reporter:  Could you give an overview of activities of Talisman globally, as well as in the Southeast Asia and Vietnam?

Mr. Rob Mills: Talisman Energy Inc. is a global upstream oil and gas company, headquartered in Calgary, Canada. Talisman has two core operating areas: the Americas (North America and Colombia) and Asia-Pacific.  Talisman is committed to conducting business safely, in a socially and environmentally responsible manner, and is included in the Dow Jones Sustainability (North America) Index. Talisman is listed on the Toronto and New York stock exchanges under the symbol TLM.

In North America, we hold positions in five of the continent’s leading plays – representing a blend of natural gas and liquids.  In Colombia, we are growing our oil production and own a share of pipeline, providing us with access to key markets.

In Asia-Pacific, we are operating in Indonesia, Malaysia, Viet Nam, Australia and Papua New Guinea.  We have built a reputation of efficient operations with consistent safe delivery.  This creates opportunities, the most recent was our being awarded operatorship of the Kinabalu platform in Malaysia, marking the first time such an asset has not reverted to the national oil company. 

In addition to our core operating areas, we have a number of other high-value assets and near-term exploration activities.  For example, in the Kurdistan region of Northern Iraq, we have already proven the presence of significant hydrocarbons, and our current drilling program will help identify the full potential of this area. 

We are fortunate that our portfolio gives us the flexibility to shift our focus to more profitable assets. In 2013, 90 per cent of our capital budget is directed toward liquids opportunities and international gas.

TALISMAN VIETNAM

Talisman first entered Vietnam in 2001 through an acquisition that secured positions in the PM3-CAA (Commercial Arrangement Area) and Block 46-Cai Nuoc, located in the overlapping area between Viet Nam and Malaysia.  In 2002, Talisman entered into Block 46/02 with our partners PVEP and Petronas.  Then, in 2005, again with PVEP, Talisman entered into Block 15/2-01.

In pursuit of a strategy to explore the frontier deepwater acreage of the Nam Con Son basin, Talisman entered Blocks 133-134 in 2009, and Blocks 05-2/10 (with partner PVEP) and 135-136/03 (with partners PVEP and Mubadala Petroleum) in early 2011.  Talisman also invested in two PSCs (Production Sharing Contracts) in Ma Lai-Tho Chu basin namely Block 45 and Block 46/07 (with partners PVEP and Mitra).  Recently, Talisman acquired Premier Oil Vietnam South’s and Vietnam American Exploration Company LLC’s working interest in Block 07-03 PSC and became the Operator.  Well appraisal and preliminary development plans are being conducted for the earliest possible field development.

Talisman, together with its partners in PM3, currently delivers the gas that fuels approximately 20% of Vietnam’s gas fired electrical generating capacity. The Block 46-02 Song Doc operations came on production in 2008.  The HST and HSD fields in Block 15-2/01 are located on the western edge of Vietnam's prolific Cuu Long Basin and came on production in May 2013.

As an integral part of our strategy, Talisman commits to corporate responsibility work ensuring that the communities where we operate benefit from our presence.   Talisman provides both financial and non-financial contributions to communities in Vietnam through many meaningful projects and activities.

During its more than 10 years operating in Vietnam, Talisman has contributed significantly to develop many social projects to promote education, traffic safety, environment and to empower communities in many cities and provinces of Vietnam. Talisman Vietnam employees are also supported to volunteer with organizations in the communities through "Investing in Our Communities" program and others CSR projects.

Reporter:  Up to the present time, how many capital has Talisman Energy invested for oil and gas activities in Vietnam and profits earned from oil - and gas contribute to the country of Vietnam?

Mr. Rob Mills: Up to end of 2012, Talisman has invested over 3.0 billion USD in its various projects in Vietnam.

As at end of 2012, Talisman has generated revenues of close to 2 billion USD for Vietnam. Talisman is also a strong supporter of the local industry having awarded over the last eleven years in excess of 3.25 billion USD to the local contracting industry. 

The Leaders of the Talisman Vietnam, PetroVietnam, PVEP and Thang Long JOC are performing the ritual to welcome the first oil flow from the miners of Hai Su Trang and Hai Su Den.

Reporter:  How do you evaluate the cooperation relationship between PetroVietnam and Talisman Energy in operating the projects of exploration and exploitation of oil and gas in the past year?

Mr. Rob Mills:Talisman has a long term commitment to Vietnam and its investment is growing.  HST/HSD First Oil  is an example that marks a key milestone of Talisman’s business in Vietnam.  This success was achieved thanks to close cooperation and support by PetroVietnam and Government of Vietnam.  During the implementation of the project, Talisman and its partners faced a lot of challenges, however, Talisman always had great attention, guidance and support from PetroVietnam, the Ministry of Industry and Trade and the Government of Vietnam in order that the project could move forward to today’s success.

This kind of success is what Talisman hopes to see in the future. In this regard, Talisman’s character and ability to overcome challenges will be an important competitive advantage, and gives us all cause for optimism for the continued success in developing our core Asia-Pacific business.

Interviewed by: Le My/ VietnamEnergy.vn