Vietnam PVEP to complete drilling first well in Uzbekistan Kossor block in Aug

State-owned PetroVietnam’s upstream unit, PVEP, aims to complete drilling the first exploration well at the Kossor block in northwestern Uzbekistan in August, PetroVietnam said Thursday.

PetroVietnam and its Uzbekistan partner Uzbekneftegaz found three potential structures in the block, following which they will accelerate work at the project, the company said.

Drilling commenced on June 8 in a ceremony attended by Vietnamese ambassador to Uzbekistan Le Manh Luan, a government source said this week. PetroVietnam had inked a $30 million contract with Uzbekneftegaz in January 2010 to drill three oil wells and conduct 2-D seismic surveys over 2010-2014 to explore for oil and gas across a 5,500 sq km area at the Kossor block, the source added.

In another development, PetroVietnam and Uzbekneftegaz this week signed an agreement on geological exploration work on Uzbekistan’s Molabaur block during a working visit to Uzbekistan by PetroVietnam’s general director Do Van Hau, PetroVietnam said Thursday.

A PetroVietnam spokesperson declined to give further details. But according to Uzbekistan Today on July 6, the Vietnamese side plans to invest $61.58 million in exploration on the Molabaur investment block within 5 years.

Kossor Operating Company, PetroVietnam’s operator in Uzbekistan, will deal with the organisation of all types of exploration work under the agreements.

As part of the agreement, resident organisations of Uzbekistan that are engaged in supply of materials as well as rendering works and services to Kossor Operating Company are exempt from value added tax at the appropriate volumes, the daily said.

PetroVietnam and Uzbekneftegaz earlier this year also signed an agreement to jointly study the Paleozoic sediments in Uzbekistan, PetroVietnam said in January.

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Category: Business