PVN has bought Chevron in Vietnam

PVN has bought Chevron in Vietnam - 

On June 17, Vietnam Oil and Gas Group (PVN)   received all shares and executive right from Chevron in Vietnam. Mr. Nguyen Xuan Son, the Chairman of PVN and Ms. Melody Meyer, the President of Asia - Pacific Chevron have signed an agreement for transferring  shares and executive right from Chevron to PVN.

Chairman of PVN Nguyen Xuan Son and the President of Asia - Pacific Chevron Melody Meyer have signed an agreement for transferring shares and executive right from Chevron to PVN.

Accordingly, PVN receives the companies as Chevron Vietnam (Block B) Ltd, holding 42.38% participating interest of the Product Share Contract (PSC) of B and 48/95 Lots; Chevron Vietnam (Block 52) Ltd, holding 43.40% participating interest of PSC of 52/97 Block offshore Vietnam continent shelf and the Chevron Southwest Vietnam Pipeline Co. Ltd, holding 28.7% participating interest of the Pipeline Project for natural gas transmission from offshore southwest to the gas consumption households in Vietnam.

Since 1996, the contractors have developed seeking and exploring the B 48/95 and 52/97 Lots with a lot of works on a large area. The area under the contract includes 3,200 kilometers on Malay- Tho Chu basin on Vietnam offshore southwestern with a water depth from 60 to 80 meters.

The results of exploration leaded to significant oil and gas discoveries that were commercially published in 2002 and 2008, and the Joint Development Agreement was fulfilled in 2007 in order to put discovered structures into development and exploitation.

The reliable petroleum reserves at 2P level in this area are 6,008 billion cubic feet (170 billion cubic meters) of the gas, 4 million m3 (25.25 million barrels) of the condensate; and the petroleum reserves expected to be retrieved are 3,785 billion cubic feet (107 billion cubic meters) of the gas, 2 million m3 (12.65 million barrels) of the condensate. The above figures have been approved by the Vietnam authorities. The gas reserves will be increased when expanding additionally exploration activities in the remaining area of the PSCs.

The B Lot - O Mon Gas Pipeline constructed for gas supplying power plants in O Mon, Kien Giang and gas supplementing power plant and fertilizer plant in Ca Mau.

The total investment of the gas mining development, pipeline and power plants expects over US$ 10 billion. The gas volume would be sufficient for a 4000MW thermal power capacity.

PVN Chairman Nguyen Xuan Son said: "B Lot Gas Project is a key gas exploiting project of PVN. The project has a very important meaning in promoting socio - economic development in the region and contributing to energy security guaranty of the country as well. The process of construction and operation of a chain of projects as gas exploitation, treatment, transportation processing and power plants will strongly promote socio- economic development in the southwestern provinces, contribute to environmental protection due to using clean fuel, stabilize the national power sources and open a possibility for connection with the gas transmission system of the countries in the region".

"That the PVN has completed the transaction to buy assets of Chevron in Vietnam will create favorable conditions to accelerate progress of mine development and component project implementation, promptly put gas source into servicing the national economy development" PVN Chairman confirmed.

This trade transaction has been passed by joint venture partners and the Vietnamese government and taken effect since 17/6/2015.

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