Santos has progressed its strategy of international expansion by signing a Production Sharing Contract (PSC) with the Vietnam Oil and Gas Corp (PetroVietnam) for Block 101-100/04 (Block) in the Song Hong Basin, Offshore Vietnam.
Under this PSC, which was directly negotiated with PetroVietnam, Santos will operate the Block and hold a 55% participating interest whilst Singapore Petroleum Co Limited will hold the remaining 45% interest.
As part of the work commitment, the co-venturers are required to process and interpret existing seizmic data, acquire and process new 3D seizmic, as well as drill one exploration well within the first three-years of exploration. The total term of the contract is 30 years with an exploration period of at least seven-years.
“We are pleased to continue to grow our exploration interests in Vietnam,” said Santos’ Managing director, John Ellice-Flint.
“This follows our recent oil and gas discovery at Dua in the Nam Con Son Basin, and is consistent with our strategy of building material positions in prospective basins.”
Participants in the Block are:
Santos Vietnam Pty Ltd, 55%
Singapore Petroleum Vietnam Song Hong Co Ltd, 45%.