SOCO announces PSC for offshore blocks 125 and 126 in Vietnam

LONDON -- SOCO has announced that a Production Sharing Agreement (PSC) for Blocks 125 & 126, offshore central Vietnam, between PetroVietnam, SOVICO Holdings and SOCO was formally signed on Oct. 27, 2017, awarding SOCO a 70% operated interest over the two blocks. The signing ceremony in Hanoi was attended by SOCO’s President and Chief Executive, Ed Story.

Blocks 125 & 126 are located in moderate to deep water in the Phu Khanh basin, offshore central Vietnam, to the north of the Cuu Long basin, and have multiple structural and stratigraphic plays observed on the available seismic data. Interpretation of the existing data indicates there is good potential for source, expulsion and migration of oil with numerous reservoir and seal intervals likely. Accordingly, there is a very real possibility that a new oil province could be developed offshore Vietnam.

A Memorandum of Understanding was signed by the partners in 2015 and the final PSC was approved by the Vietnamese Government and Prime Minister in August 2017. SOCO’s capital expenditure for 2017 includes the purchase of existing seismic data. Initial exploration activities will include reprocessing and interpretation of seismic data, with a view to drilling the first exploration well potentially as early as 2021.

SOCO has been present in Vietnam for almost two decades and has invested over $1 billion into its oil and gas projects located offshore southern Vietnam, making SOCO one of the largest British investors in Vietnam. SOCO’s joint-operations have achieved an outstanding record of safety and have contributed to national economic growth through a strong commitment to local sourcing, employment, training and industry upskilling. SOCO’s current producing interests are Te Giac Trang field of Block 16-1 and the Ca Ngu Vang field of Block 9-2, both offshore Vietnam, which together, are amongst Vietnam’s largest oil producers.