As previously reported, the Vietnamese Government has forced Repsol to cease drilling in Block 136-3, which lies in the disputed portion of the South China Sea, after China threatened Viet-namese facilities on their Spratly Island outposts. Odfjell’s UDW drillship Deepsea Metro I has returned to Vung Tao and Repsol has issued a Force Majeure notice under its contract with Odfjell. The rig had completed one well under its 2 firm well charter which had a minimum duration of 150 days. Odfjell is now considering the legal implications of the notice. Meanwhile Repsol have reported that they have spent $27m so [...]
Petronas is to hand exploration blocks 01 and 02 back to PetroVietnam when the lease expires in September this year. The Malaysian NOC has operated the two blocks, which contain the Jade, Ruby and Emerald fields, since 1991. Petronas, who retain blocks 102 and 106 in North Vietnam, are to retain operatorship of the production facilities in Blocks 01 and 02. A long line of SEA based jackups have drilled in the two Blocks with the last drilling in 2015 with troubled jackup Naga 6. This was Petronas’ first successful international venture.
Despite all the initial secrecy surrounding the Repsol drilling program in Vietnamese Block 136-3, using Odfjell UDW drillship Deepsea Metro 1, it was inevitable that China would object to Repsol drilling in a disputed area of the South China Sea and indeed they have now forced the Vietnamese authorities to stop Repsol drilling in the block. Some reports suggest that China, rather than attacking an internationally owned drilling rig, had instead threatened to attack Vietnamese outposts in the Spratly Islands if drilling did not stop. The rig is understood to have drilled one well plus a sidetrack but is now [...]
Britain’s Soco International has concluded negotiations with PetroVietnam and Sovico Holdings to acquire a 70% interest in deepwater PSC Blocks 125 and 126 in the Phu Khanh basin. This has extended SOCO’s holdings in the Vietnamese oil and gas sector the most important of which is their stake in the TGT field which is operated by Hoang Long JOC.