Russian firm to invest $400mn in Vietnam gas

21st November 2011, Comments 0 comments

The Vietnamese subsidiary of Russia's third-largest oil company plans to invest $400 million in two undersea wells off southern Vietnam, the company announced on Monday.

Drilling of both wells in the Lan Do field will start "in the coming month", with the first gas set to flow in the fourth quarter of next year, TNK-BP said in a statement.

Lan Do is expected to produce two billion cubic metres of gas annually, and its commissioning is timed to offset a decline in production at the Lan Tay field already operated by the company.

Lan Tay and Lan Do are in an area known as Block 06.1 in the Nam Con Son basin, 320 kilometres (198 miles) off southern Vietnam, where other international oil firms are also active.

TNK-BP is one of the world's top 10 private oil producers and has been seeking ways to expand its production base beyond Western Siberia.

In October 2010 TNK-BP and British giant BP announced a deal under which the Russian firm would acquire BP's stakes in upstream, pipeline and electricity assets in Vietnam and Venezuela.

TNK-BP took over operations in Block 06.1 in October.

© 2011 AFP

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