Zarubezhneft to create new gas cluster in Southeast Asia after asset deals

Moscow, June 23 - Neftegaz.RU. Zarubezhneft recently farmed into the Tuna block that is being appraised offshore Indonesia, and is operated by Premier Oil, now a Harbour Company.
It is also in the process of buying assets from compatriot Rosneft offshore Vietnam, Energy Voice reported.

The completion of a 50% farm-in to the Tuna block last month forms part of Zarubezhneft’s strategy to create a new upstream development cluster bringing together the company’s existing Block 12/11 in Vietnam, as well as Block 11-12 in Vietnam – where Korea National Oil Company (KNOC) has a 75% stake and PetroVietnam has a 25% share – and the Tuna discovery, according to the company.

Zarubezhneft’s CEO Sergey Kudryashov told Russian TV that 1 upstream cluster has been formed in Southeast Asia linked to the joint Russian-Vietnamese enterprise Vietsovpetro.
Kudryashov said:

• 1 cluster has been formed there [in Southeast Asia], linked to Vietsovpetro
• We are currently forming a 2nd cluster there; this is more associated with gas
• That is, both a number of our enterprises and a number of deals which we are involved in as of today
• Hopefully, we will reach a comparable volume of gas production within the next year or 2, which will enable us to create a 2nd cluster in Southeast Asia – a gas one

The Tuna discovery, operated by Premier Oil with a 50% share, is Zarubezhneft’s only asset in Indonesia.
Kudryashov said the company was not planning to enter new projects in Indonesia in the near future:

• Our strategy is to enter a small asset
• These are always minimal risks due to the size, they are small
• Because there are political, economic, geopolitical risks – it’s better to go through everything as a battle, understand where we are, and then expand

2 successful exploration wells have been drilled at Tuna, which has estimated reserves of 100 million barrels of oil equivalent and lies close to the maritime border with Vietnam.
Further appraisal drilling is expected over the coming months to confirm the size of the resource.
Kudryashov said:

• The rig is currently preparing to be moved to the point and start drilling

In May, Zarubezhneft confirmed that it has agreed to buy Rosneft’s share in 2 offshore exploration and development projects in Vietnam, as well as a related offshore gas and condensate pipeline.

Rosneft has a 35% operating stake in offshore Vietnam Block 06.1 with India’s ONGC Videsh holding a 45% share and PetroVietnam on the remaining 10% interest.
The block holds 3 gas and condensate discoveries:

• Lan Tay, Phong Lan Dai and Lan Do
• in water depths up to 190 m in the Nam Con Son basin

Rosneft also has rights to explore and develop Block 05.3/11, which sits near Block 06.1.
The company also has a 33% interest in the Nam Con Son pipeline that ships gas from Block 06.01 and other producing fields nearby to shore.
Petrovietnam holds a 51% share in the pipeline along with France’s Perenco with a 16% share.


Author: Damon Evans