OREANDA-NEWS. January 22, 2013. As previously reported, in July 2012 Zarubezhneft won the tender for exploration the oil and gas Block 12/11 offshore southern Vietnam.

Corresponding production sharing contract was signed on December 19th, 2012 in Vungtau by the General Director of "Zarubezhneft" JSC N.Brunich and the General Director of "Petrovietnam" Oil and Gas Corporation Do Van Hau.

In the signing ceremony took part from the Russian side the Deputy Minister of Energy Y.Sentyurin, Extraordinary and Plenipotentiary Ambassador of the Russian Federation in SRV A.Kovtun, Consul General of the Russian Federation in Ho Chi Minh City A.Borovik and Trade Representative of the Russian Federation in SRV M.Golikov, from the Vietnamese side – Deputy Minister of Industry and Trade of SRV Le Duong Quang and Chairman of the Board of Members of "Petrovietnam" OGC Phung Dinh Thuc.

The first stage of three years long geological exploration includes carrying out surveys, in course of which it is planned to drill 3 exploratory wells and conduct 3D seismic survey covering a total area of 1000 sq.km.

"Vietsovpetro" JV has been appointed the operator of the project. Agreement on operator activity has been signed with the joint venture on December 19th in Vungtau.

Specialists of Zarubezhneft estimate the gas reserves in Block 12/11 to be more than 76 bln cubic meters. According to the results of geological exploration reserves will be clarified.

The whole stage of the geological exploration is 100% financed by Zarubezhneft. After completion of geological exploration and commercial oilfield discovery Petrovietnam has the right to enter the project by acquiring up to 51% participation interest from Zarubezhneft.

Produced gas will be delivered to the shore on a commercial basis and used for domestic needs of Vietnam, in particular, for the thermal electric power stations running on gas.

Block 12/11 is located in Nam Con Son Basin, 200 km south of the fields Bach Ho and Rong being developed by "Vietsovpetro" JV.