15:09 | 29/03/2018 Energy
PVEP, a subsidiary of the national oil and gas group PVN, has signed an agreement to transfer 5% of its drilling and executive rights, at Block 15-1/05 off the coast of Vietnam, to the Murphy Oil Corporation.
|The signing ceremony between PVEP and Murphy Oil Corporation|
According to PVEP, Block 15-1/05 belongs to the Cuu Long Basin under the operation of PVEP-POC, a subsidiary of PVEP.
The production sharing contract for Block 15-1/05 was signed on 11 April 2007 between PVN and a consortium of two contractors, namely PVEP (75 percent) and SK Corporation (25 percent).
In August 2015, PVEP and Murphy Cuu Long Bac Oil Co. Ltd signed a rights transfer agreement, allowing Murphy to participate in Block 15-1/05.
With the approval of PVN, PVEP and Murphy have agreed on the content of the agreement to transfer 5 percent of PVEP’s drilling and executive rights in the block to Murphy.
On 15 March, PVEP deputy director Pham Nhu Khanh said that as oil prices have yet to recover, the development of small marginal fields is facing difficulties and requires an experienced partner such as Murphy to ensure that the project can proceed.