Vietnam Gov’t Guarantees Offshore Gas Block Project

Vietnam’s government and three foreign oil and gas corporations signed in Hanoi Friday an agreement on the former's guarantee and commitment to developing gas block 11.2 on Vietnam's continental shelf.

Foreign parties to the Government Guarantees and Undertakings (GGU) Agreement were the Korea National Oil Corporation (KNOC), the BP Pipelines Vietnam B.V. (BP) and Conoco Phillips Vietnam A.S. (COP).

Under the GGU, the Vietnamese government guarantees the fulfillment of agreements on developing and transporting gas pumped from block 11.2 to which the State-owned Vietnam Oil and Gas Corporation (PetroVietnam) is a party.

Later the same day, a contract on transporting gas from block 11-2 in the Nam Con Son Basin, around 300 km south offshore Vung Tau's coast, was inked between owners of the gas field - PetroVietnam and KNOC - and the Nam Con Son pipeline investors.

The Nam Con Son pipeline's investors have committed to pumping around $300 million into Rong Doi (Twin Dragon) and Rong Doi Tay (Twin Dragon West) fields of block 11-2 in order to start transporting gas from these fields ashore as soon as October, 2006.

(Source: VNA)
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Published: 07 October, 2005, 22:20:21 (GMT+7)
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