Italian explorer Eni picked up two new exploration assets offshore Vietnam from state-owned oil company PetroVietnam, the company announced on 13 October 2014.
Eni’s CEO Claudio Descalzi (pictured) and PetroVietnam president DO Van Hau were present in Hanoi for the signing of two production sharing contracts (PSC).
The PSCs are for blocks 116 and 124. Block 116 is located in the Song Hong basin, and spans 5000sq km in water depths ranging 10-120m. Block 124 is located in the Phu Khanh basin and spans 6000sq km in waters ranging 50-2600m.
Eni will operate Block 116 with 100% interest for a period of seven years, divided into three phases. Eni will operate Block 124 with 60% interest for a period of seven years, divided into two phases. Eni’s partner in the block will be Santos Vietnam, which holds the remaining 40%.
Descalzi said the new agreements will support the company’s growth in the Pacific basin.
“The proximity of these blocks to those which we already operate will enable us to exploit at best the logistical and operational synergies, with considerable savings in terms of time and costs,” he said.
Since returning to Vietnam in 2012, Eni currently operates four offshore blocks there.
In June, Eni signed a PSC with PetroVietnam for Block 122, offshore eastern Vietnam. Block 122 spans 6900sq km in the Phu Khanh basin, in water depths up to 2000m.
Last October, Eni spud the Ca Ngu-1 exploration well off central Vietnam, located in the Gulf of Tonkin in Block 120.