Contracts on Nam Con Son oil field exploitation signed

Ha Noi, Dec. 15 (VNA) -- Contracts for the Nam Con Son Gas Project were signed by the Viet Nam Oil and Gas Corporation (PetroVietnam) and its foreign partners, BP, Statoil of the UK and ONGC of India, in Ha Noi Dec. 15.

These included a business cooperation contract between PetroVietnam and BP Pipeline Viet Nam B.V, Statoil AS to build and put into operation a pipeline in Nam Con Son and a contract for selling gas exploited at Lot 06.1 of the Nam Con Son basin between PetroVietnam and the Lot 06.1 product-sharing contractors (PSC).

The contracts are develop the Lan Tay-Lan Do field of Nam Con Son, build a pipeline to bring gas from the field to power stations at Phu My, Ba Ria-Vung Tau province, to supply for industrial plants on the outskirts of Ho Chi Minh City in 2002.

Earlier, to complete a legal basis for exploration and exploitation at Lot 06.1, a supplementary contract was signed in October this year between the Lot 06.1 PSCs, including PetroVietnam, BP, Statoil and ONGC.

Th Planning and Investment Ministry also signed with the foreign investors of the Nam Con Son Gas Project a government commitment to ensure the investors' interest in the project.

The Nam Con Son Gas Project is significant for the development of gas industry of Viet Nam as well as of the Eastern Nam Bo (the South). Total investment by foreign investors is about USD 1,088 million. The Nam Con Son pipeline with a total length of 400 km has a capacity of 20 million cu.m per day or 6 billion cu.m per year. It has a total investment capital of USD 581 million, to which the PetroVietnam contributed 51 percent, BP, 32.67 percent, and Statoil, 16.33 percent. Under the 35-year contract, BP will have management right for the first five years and then will transfer it to PetroVietnam.--VNA