Tuesday, March 25, 2008

New Vietnam wells show more natural gas -Chevron | Markets | Reuters

U.S. energy major Chevron has found more natural gas at its Vietnam offshore field, likely boosting the over $4 billion project's resource base, as the Southeast Asian country is grappling with growing power demand.
Hank Tomlinson, Chevron Corp's (CVX.N: Quote, Profile, Research) country manager for Vietnam, told Reuters he hoped to conclude talks with state-owned PetroVietnam on selling the gas in first-half 2008.
An agreement is needed to keep the project on track to meet a 2012 target for first production, a goal that has slipped once due to ongoing negotiations.
"The joint venture partners believe that the in-place gas for the development is in excess of 5 trillion cubic feet of natural gas," Tomlinson said in a telephone interview.
That is up from previous Vietnamese government estimates that put the resources at the development of block B, 48/95 and 52/97 at up to 4 trillion cubic feet (tcf), or 16 percent of the country's total reserves.
The resource base could grow as a result of two successful wells drilled several weeks ago.
Chevron, which holds a 43 percent stake in the offshore development off the southwest coast of Vietnam, drilled one well inside the current development area to find there were large quantities of additional gas resources deeper in the reservoir than previously verified.
It also drilled an exploration well outside the development area that confirmed additional hydrocarbon potential in a new trend in block B and 48/95. Continued...

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