09:38 | 03/11/2015 Industry
Deputy Prime Minister Hoang Trung Hai witnessed the first flow of oil and gas coming from the new H5 rig at the Te Giac Trang (White Rhino) oil field, at a ceremony held in HCM City on October 30.
Deputy Prime Minister Hoang Trung Hai (centre) and representatives of Hoang Long Co inaugurate operation of the H5 rig at Te Giac Trang oil field
Te Giac Trang oil field is situated in Block 16-1, based on a continental shelf about 100km southeast of the southern Vung Tau City. It is under contract and management of the Hoang Long Joint Operating company.
The H5 rig will contribute up to 20,000 barrels of oil per day, helping to raise the total yield of the oil field to between 40,000 and 42,000 barrels per day.
This means the oil field will reach an annual yield of some 11.56 million barrels.
Deputy PM Hai appreciated efforts of the Vietnam Oil and Gas Group and Hoang Long for having put the H5 on stream 80 days ahead of schedule, and saving more than 37 million USD compared with the approved budget while implementing the project.
He said the new operation will help guarantee national energy security and increase economic benefits, reflecting efficient co-operation between domestic and foreign partners.
It would also help enhance competition capacity, labour productivity and operation efficiency for units in the domestic oil and gas sector, he added.
Hoang Long announced commercial development at Te Giac Trang in September 2009.
Prime Minister Nguyen Tan Dung officially adopted the H5 oil and gas development project in 2013, with a total investment capital of 324 million USD./.