Thursday, April 24, 2008

Vietnam's 2nd largest Oil Field to product 55,000 barrels a day

HANOI, April 24 (Reuters) - Vietnam's second largest oil field, Su Tu Den, is expected to produce about 55,000 barrels per day in 2008, down about 8.3 percent from last year, an official from state oil monopoly Petrovietnam said on Thursday.
"Production this year is stable but a little lower than last year," the official said but declined to provide reasons for the output decline.
He said the adjacent Su Tu Vang oilfield was expected to start commercial production in February next year and its crude would be blended into the Su Tu Den stream, boosting overall output by about 60,000 barrels per day (bpd) in 2009.
Su Tu Vang is operated by a group led by ConocoPhillips (COP.N: Quote, Profile, Research). Petrovietnam holds a 50 percent stake in both Su Tu Vang and Su Tu Den. Conoco holds 23.3 percent.
Other stakeholders include Korea National Oil Co with a 14.2 percent stake, SK Energy (096770.KS: Quote, Profile, Research) with a 9 percent stake and France's Geopetrol with 3.5 percent.
Crude output in Vietnam, which ranks the third-largest producer in Southeast Asia, is expected to ease about 5.3 percent in the April-June period from the first quarter to around 290,000 bpd, Petrovietnam executives have said.
Daily output has been running well below the peak of 434,000 barrels in January 2004, mainly due to lower production at Bach Ho, the country's biggest oilfield. Bach Ho now produces about 160,000 to 170,000 bpd.
Vietsovpetro, the operator of the field, has said production at Bach Ho would decline by an average of 20,000 bpd annually between now and 2014. (Reporting by Nguyen Nhat Lam; Editing By Ovais Subhani
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