ConocoPhillips has said it will inject US$115 million into various oil and gas projects in Vietnam in 2006 and is planning another huge investment over the next 10 years.
The forthcoming investment is part of the company’s plan over the next 10 years, a spokesperson for ConocoPhillips Vietnam said on May 29, adding its disbursement since 1996 would amount to more than US$1 billion.
If this disbursement is realised, ConocoPhillips will become the biggest single foreign investor in Vietnam.
The third largest integrated energy company in the US will spend more than two-thirds of this year’s investment to develop Block 15.1, which includes four oilfields Su Tu Den (black tiger), Su Tu Trang (white tiger), Su Tu Vang (golden tiger) and Su Tu Nau (brown tiger).
The largest investment package of US$39 million will go to Su Tu Vang, which is scheduled to start commercial production in 2008.
The rest will be used for exploration and appraisal drilling in Su Tu Trang and Su Tu Nau and for continued development of Su Tu Den, which is producing around 70,000 barrels per day and is the third largest producing field in Vietnam.
ConocoPhillips has a 23.25% interest in Block 15.1, along with co-venturers PetroVietnam, Korean National Oil Corp, SK Corp and Geopetrol.
The company also holds a 36% interest in Block 15.2 and 70% in deepwater blocks 133 and 134 where the company and PetroVietnam are conducting advanced seismic and geological studies to evaluate the hydrocarbon potential of these blocks.
ConocoPhillips also co-ventures at 50/50 shares with BP to appraise a gas discovery in the block called Moc Tinh. In addition, the company holds a 16.33% interest in the Nam Con Son pipeline project, which transports natural gas from Lan Tay and Lan Do gas fields to Ba Ria-Vung Tau Province.
Given its large contribution to the economic and social development in Vietnam over the last 10 years, the company has received the Labour Medal Third Class from the Vietnamese government. Its donations to various social programmes in the country have reached almost US$300 million.