Rosneft, PetroVietnam forming Pechora Sea JVs, to invest $1.5 bln in exploration
MOSCOW. Sept 5 (Interfax) - Rosneft and PetroVietnam have reached agreement to form joint ventures to operate at two Pechora Sea shelf sections.
Rosneft said it would own 66.67% and PetroVietnam - 33.33% of the equity in the ventures.
The agreement was reached in the framework of an agreement on the main terms for cooperation in geological exploration and hydrocarbons production on the Pechora Sea shelf with respect to the Yuzhno-Russky and Zapadno-Matveyevsky licensed sections, which the companies signed on November 12, 2013, during a visit by Russian President Vladimir Putin to Vietnam.
The two sections contain estimated recoverable resources of 367 million tonnes oil and 64 billion cubic meters gas. Overall recoverable ABC+C2 reserves are 13 million tonnes oil and 52 bcm gas. The exploration program calls for five exploratory wells to be drilled and seismic surveying to be carried out and will cost an estimated $1.5 billion.
PetroVietnam has said it is ready to take part in projects in Russia and to promote Russian projects on the Asian-Pacific market.
Rosneft is involved in two projects to produce gas and gas condensate offshore Vietnam. Rosneft Vietnam B.V. is operator of the project develop Block 06.1 with initial reserves of 68 bcm of gas with a 35% stake; and of the Block 05.3/11 project with an estimated 38.4 bcm gas and 39 mln tonnes condensate with a 100% stake. The company is currently interpreting seismic data.
Rosneft Pipeline B.V. has a 32.7% stake in the Nam Con Son pipeline project, to transport hydrocarbons from the Nam Con Son basin to shore.
