Under the agreement, Australia’s third-largest petroleum company will hold a 37.5% interest in the production-sharing contracts of Blocks 12E and 12W after funding a proportion of the costs of a two-well drilling program.
The blocks cover about 5160 square kilometres in the Nam Con Son Basin, offshore southern Vietnam.
The two-well drilling work program comprises the Dua-4X and the 12-CS-1X Blackbird wells in Block 12E. The first well, Dua-4X, is scheduled to start drilling in early May and will be immediately followed by Blackbird.
Santos said its move into Vietnam was in line with the company’s strategy to diversify its international operations through a focus on material positions in proven hydrocarbon basins.
It is also currently assessing other opportunities to increase its exposure in Vietnam, according to managing director John Ellice-Flint.
“The Nam Con Son Basin is a proven hydrocarbon province and we are pleased to be teaming up with an established operator with excellent regional experience,” he said.
“The targets are close to production facilities and in shallow water, which will help shorten the development cycle time in the event of a discovery.”
Following the farm-in, the interests in Blocks 12E and 12W will be operator Premier Oil, which owns 37.5% (formerly 75%), Santos International Holdings 37.5% and Delek Energy 25%.
