KEYFACT Energy
JX Nippon Oil & Gas Exploration Corporation ("JX NOEX") announces that 5-year license extension has been granted by the government of Vietnam for our petroleum operations in Phuong Dong oil field in Block 15-2, offshore Vietnam.
JX NOEX assets in Vietnam (Map source: KeyFacts Energy)
The previous license term was due to expire in April 2020. Japan Vietnam Petroleum Company Ltd. ("JVPC") (President, Takao Hashimoto), a subsidiary of JX NOEX who operates Phuong Dong oil field and PetroVietnam Exploration Production Corporation ("PVEP"), a subsidiary of PetroVietnam, a national oil company of Vietnam and JVPC’s partner to Phuong Dong oil field, have been seeking for support from PetroVietnam and Vietnamese government to extend the license term and finally 5- year extension until April 2025 has been granted considering JVPC’s contribution through the long-term and stable operational history.
Besides Phuong Dong oil field, JVPC operates Rang Dong oil field in the same block. In 2013, the 5-year license term extension was granted for Rang Dong oil field in order to implement the Hydrocarbon Gas EOR and as a result the license term was extended from April 2020 to April 2025.
JVPC signed Production Sharing Contract for Block 15-2 in 1992, following which through exploration activities JVPC found the oil/condensate and gas and commenced the production in Rang Dong and Phuong Dong oil fields in 1998 and 2008 respectively. JVPC holding 46.5% and 64.5% of participating interests in Rang Dong and Phuong Dong oil fields respectively has been conducting the development and production operations in these oil fields with PVEP and Perenco Rang Dong Limited.
The cumulative oil and gas production volume in Block 15-2 from both of Rang Dong and Phuong Dong oil fields has reached approximately 230 million barrels and 370 billion cubic feet respectively up to date. JVPC also has achieved sixteen (16) years of zero LTI (Lost Time Injuries) operation in these oil fields in September 2019 and is continuing safe operation.
The company intend to maintain and strengthen their long-term good relationship in Vietnam and to stably generate the cash flow and maximize the value of project through their E&P business activity as Operator.