ROSNEFT & JDC WILL DRILL
Rosneft Vietnam B.V., a company of Rosneft Group, and Japan Drilling Co., Ltd. (JDC) represented by its subsidiary Hakuryu 5, Inc. signed an agreement on provision and operation of the marine drilling rig HAKURYU-5, for the purposes of drilling exploration wells within the framework of Rosneft's projects in Vietnam. It is planned to drill two wells in Blocks 06.1 and 05-3/11 in the Nam Con Son basin offshore Vietnam in 2016.
Consistent implementation of drilling works at both blocks will ensure synergy between the two projects and help reduce the timelines for implementation of the works, thus maximizing the efficiency of exploration activities at the Company's Vietnamese assets.
Commenting on the document's signing, Rosneft Chairman of the Management Board Igor Sechin noted: "We have always welcomed participation of high technology partners from Japan in implementation of the Company's projects. Despite the difficult macroeconomic situation, today we are expanding our cooperation in the area of exploration and production of hydrocarbons by executing contracts not only in Russia, but also in Asia Pacific."
At present Rosneft is involved in the projects related to gas and condensate production and geological exploration in two blocks on Vietnamese shelf:
- Block 06.1: Rosneft Vietnam B.V. owns 35% in the project, acting as the project operator; the project is being implemented based on the Production Sharing Contract (PSC). The PSC area comprises two gas condensate fields – Lan Tay and Lan Do. The fields are located 370 km from the shore in the Nam Con Son basin, the sea depth at the fields reaches 190 m. The initial gas reserves at the fields are about 68 billion cubic meters. By June 2015, accumulated production from Block 06.1 reached 300 million barrels of oil equivalent (or over 46 bcm of gas).
- Block 05-3/11: Rosneft Vietnam B.V. owns 100% in the project and is the project operator. The licensed block is located in the region with proven hydrocarbon potential and well-developed infrastructure that also borders with the already operated fields of Block 06.1. The current estimate of Block 05.3/11 reserves is 40 billion cubic meters of gas and 9 million tons of gas condensate. 3D-seismic survey of 1,180 square kilometers and subsequent interpretation and studies have been completed, structures for exploration drilling activities in 2016 were defined.
- Rosneft is also an investor with 32.67% equity in the Nam Con Son Pipeline – transporting gas and condensate from four offshore blocks in the Nam Con Son basin to power complex onshore –which creates a potential synergy in the event of discovery of commercial reserves in Block 05-3/11.
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