PetroVietnam has signed a heads of agreement with a South Korean oil company to purchase natural gas from block 11-2 in Vietnamese waters. The Korea National Oil Company (KNOC) and the Vietnam Oil Company and Gas Corporation (PetroVietnam) signed the agreement yesterday, which will see PetroVietnam buy the gas KNOC extracts.
KNOC will invest approximately US$300 million to install gas production facilities to supply 3.96 million cum of natural gas per day for 23 years, starting in 2005.
Electricity of Vietnam will use the gas to power the Phu My electricity plant in Ba Ria-Vung Tau Province. KNOC will build two offshore platforms to extract the gas which will then be piped to the power plant. Oil will be processed on the offshore platforms and than transported to the shore.
KNOC has extracting natural gas from the three blocks of 11-2, 15-1 and 16-2 in Vietnam since 1992.
KNOC and its partners have also discovered a large oilfield in block 15-1 and will start oil production from November next year.