[Vnbiz] DJ PetroVietnam OKs Santos To Explore 2 Northern Oil Blocks

[Phan, Tai]

DJ PetroVietnam OKs Santos To Explore 2 Northern Oil Blocks  


HANOI, Oct 26, 2006 (Dow Jones Commodities News Select via Comtex) --
Australian oil giant Santos Ltd. (STOSY) and Singapore Petroleum Co. (S99.SG)
have been awarded exploration and production rights for two offshore oil blocks
in northern Vietnam, an official with state oil monopoly PetroVietnam said
Thursday.This marks the first time Vietnam has allowed foreign oil companies to enter its
northern region, which is believed to contain large crude oil and natural gas
reserves, the official, at PetroVietnam's headquarters, told Dow Jones
Newswires.Blocks 101-100/04, covering a total 6,200 square kilometers, are located in the
Song Hong Basin, which is about 30 kilometers offshore of Thai Binh province,
the official said."This area is expected to have good potential for oil and gas because it is at
the center of the basin and beside an area where Chinese firms have found crude
oil and gas reserves," the official added.PetroVietnam has agreed to allow Santos and Singapore Petroleum to jointly
explore the blocks, where they pledge to spend a total of $12 million on
exploration, including drilling one well, during the first three years, he said,
without elaborating.PetroVietnam is scheduled to sign a production-sharing contract with the two
companies Friday in Hanoi.Santos will be the operator of the two blocks, while other investment details
weren't provided.Work on the blocks will begin after the contract is signed, the official added.-By Nguyen Pham Muoi; Dow Jones Newswires; 844-825-0732;
phammuoi.nguyen®dowjones.com-Edited by George Bernard(END) Dow Jones Newswires10-26-06 0045ET
Copyright (c) 2006 Dow Jones & Company, Inc.