10:01 | 14/02/2019 Energy
The Ca Tam oilfield, offshore southern Vietnam, is expected to enrich state coffers with revenues of US$1 billion.
|The Ca Tam oil field produced its first oil on January 25, 2019 - Photo courtesy of PetroVietnam|
The oil field, which became operational late last month, is jointly developed by Vietsovpetro, a Vietnam-Russia oil joint venture, state-owned PetroVietnam Exploration Production Corp (PVEP) and private Bitexco Group.
On the opening day, the oil field produced its first 1,630 metric tons (over 230 barrels) of oil.
The field, in block 09-3/12, 160 km (100 miles) southeast of Vietnam, is hooked up to the facilities in nearby block 09-1, which houses the country’s largest oil field, Bach Ho, also operated by Vietsovpetro.
Under an agreement signed in 2012, Vietsovpetro will take 55 percent of the oil produced from this field, PVEP, 30 percent, and Bitexco, 15 percent.
Oil production from Ca Tam field is expected to deliver handsome economic benefits until 2032, contributing a total of more than US$1 billion to state coffers.
The field is forecast to give Vietsovpetro an aggregate profit of US$238 million, PVEP, US$130 million and Bitexco, US$65 million.
Ca Tam is the first new field to be brought into production in Vietnam in several years after a 2014 plunge in oil prices slowed exploration.
The field is significant in the context of declining production in the country’s key fields, which has left the industry struggling to maintain oil and gas output, Reutersreported.
Vietnam’s crude oil output is expected to fall by 10 percent a year through to 2025, PetroVietnam said October.
Output in 2018 fell 27 percent from 2017 to 11.3 million metric tons, according to state-run PetroVietnam.