Vietnam Assets

First contract awarded on TGT, it seems, whilst I was away (reported 26th June):

http://209.85.229.132/search?q=cache:Wxyip7eXaNEJ:www.energy-business-review.com/news/petroleum_technical_services_signs_service_contracts_worth_450_million_in_vietnam_090626+te+giac+trang+approval+%22july+2009%22&cd=4&hl=en&ct=clnk&gl=uk

Petroleum Technical Services Corporation (Petroleum Technical Services), a petroleum technical services provider, has entered into four contracts worth $450 million with four oil companies in Vietnam, Dowjones Business news reported. The first contract worth $240 million contract with Premier Oil Vietnam Offshore BV is to manufacture two oil rigs and pipeline systems for production at the Chim Sao and Dua fields in the Nam Con Son basin off the southern Vietnam coast.

The construction related work will be concluded by July 2010.

Petroleum Technical Services also entered into second contract with Hoang Long-Hoan Vu joint operating firms to construct an oil rig, an infield pipeline system and a gas export pipeline system. The contract is valued at $150 million. Te Giac Trang field in the block 16.1 off the southern Vietnam coast will utilize these systems, which are to be constructed within two years.

The Hoang Long group includes PetroVietnam Exploration & Production Co. (PVEP) holding 41% stake; Soco Vietnam with 28.5%; PTTEP Hoang Long Co. with 28.5%; and OPECO with 2%. The Hoan Vu joint venture contains Petrovietnam with a 50% stake; PTTEP with 25%; and Soco Vietnam with 25%

....presumably the basis for this is that  TGT is now effectively a "done deal". That being the case, final confirmations can't be far off!

Briefer report from 1st July in Hanoi Times here: http://www.hanoitimes.com.vn/newsdetail.asp?CatId=36&NewsId=11493 

The company also signed an Engineering, Procurement, Construction, Installation (EPCI) contract for the developing of Te Giac Trang Oilfield in the bloc 16.1 with the Hoang Long-Hoan Vu Joint Operating Company, a subsidiary of PetroVietnam.

ee

News here on a new Vietnam gas project:

http://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUST318220090724

Chevron as operator, with PV, PTTEP and Mitsui....spending $4bn on a gas development in Blocks B, 48/95 and 52/97, to produce 500mn cu ft of gas per day.

Now, at first sight, that has nothing to do with SOCO - but those of us who attended recent AGMs will recall that Chevron were pushing for a particularly high price for their gas contract [$8-9 IIRC, albeit in a very different oil price environment]........

....so what this deal says to me is that they have finally agreed a figure with PV and the Vietnamese government - which ought to mean that there is ALSO some basis emerging for a final gas sales agreement for CNV. IMO.

ee

In reply to emptyend (post #2)

what this deal says to me is that they have finally agreed a figure with PV and the Vietnamese government

It turns out I was wrong to guess this. Apparently no price has yet been agreed - and there seems to be a biggish gap. The FEED then looks merely symbolic......

...hey ho!

ee

TGT press comments in the last few weeks:

http://www.baobariavungtau.com.vn/en/oilgas/63211/index.brvt

The reserves of oil and gas in place of the field was approved and permitted by the Vietnamese Government for use of reserves data as a base to set up the plan for project development early. PetroVietnam agreed HLJOC to purchase equipment, materials for drilling and constructing offshore projects in order to exploit the oil first.

In the coming time, the exploitation of TGT field will be conducted through the WHP -1 and WHP-4 and is located at the H1/H2 and H3/H4. The full exploited flow of oil will be processed on the FPSO and the exported gas will be forwarded through Bach Ho (White Tiger) platform. According to the plan, HLJOC awards the entire tender package for the PTSC M & C as an EPC contractor: engineering, procurement and construction.

 

http://www.monre.gov.vn/MONRENET/default.aspx?tabid=256&idmid=&ItemID=67762

PTSC also signed ship-leasing contracts with Thang Long Joint Operating Co and Truong Son Joint Operating Co. The company also signed an Engineering, Procurement, Construction, Installation (EPCI) contract for the developing of Te Giac Trang Oilfield in the bloc 16.1 with the Hoang Long-Hoan Vu Joint Operating Company, a subsidiary of PetroVietnam.

http://ptsc.com.vn/Print.aspx?NewsID=972

Hoang Long – Hoan Vu JOC delivered Letter of Award to PTSC as EPCI Contractor. This package belongs to Te Giac Trang Field Project block 16.1 offshore Vung Tau. PTSC shall perform as EPCI Contractor fabricating Wellhead Platform for Hoang Long – Hoan Vu. The project includes 01 Drilling Rig H1 and 02 Jackets (H1 & H4) with the total weight of 6.500 tons along with infield pipeline and gas export pipeline. This is the challenging project with the timing schedule of 24 months and the value of 150M USD.

Not sure there is anything new there, though......

ee

News of a contract in TGT:

http://www.upstreamonline.com/live/article187470.ece

Malaysia’s Bumi Armada is primed to supply the floating production, storage and offloading vessel for the Te Giac Trang (White Rhinoceros) oil project off Vietnam operated by the Hoang Long joint operating company.

Sources involved with the project told Upstreamonline that Bumi Armada landed the deal, for what is set to be the world’s shallowest water FPSO and is widely regarded to set a design precedent for shallow water FPSOs, particularly for the onerous conditions off Vietnam......

The production capacity of the Te Giac Trang FPSO is understood to be an initial 40,000 barrels of oil per day and 20 million cubic feet per day of gas, and the vessel will have oil storage of a maximum 1 million barrels.

You'll note that the article infers that the TGT development is some distance ahead of Talisman's HST/HSD development - though the PR balance over the last year might suggest the opposite. There is much to be said for simply getting on with it!

ee

Worth watching the rig situation too: http://www.upstreamonline.com/live/article187596.ece

PV Drilling now owns and operates three jack-ups, two are due for delivery from Singapore’s KeppelFels by mid-November.

Construction on the first unit, PV Drilling II, is expected to be completed as early as the end of next week, KeppelFels chief executive Tong Chong Heong said at the naming ceremony of the twins......

Both rigs are built to Keppel’s proprietary KFELS B Class design. Keppel has delivered 28 such rigs since 2000, excluding the two PV Drilling units....... 

Its sister rig, PV Drilling II is contracted for a one-well campaign, Kanh said. Talks are underway for a two-year charter on the new jack-up.

I suspect we might know who with? ;-)

ee