Monday, October 15, 2012

Vietnam's PVEP buys into Perenco oil block

By Vu Trong 

HANOI--PetroVietnam Exploration Production Corp., a leading production unit of Vietnam's state-owned PetroVietnam, has completed the purchase of a stake in an onshore oil block in Peru from Perenco, PVEP said over the weekend. 

The purchase of the stake is part of PetroVietnam's strategy to expand operations overseas for profits and ensuring national energy security, PVEP said in a statement, without giving more details. 

State media cited PVEP as saying in June that it would buy a 52.6% stake in Block 67 in Peru's Maranon Basin. 

The two companies expect first commercial oil production from the block in July or August 2013, Vietnam News Agency reported, adding that output from the block is expected to be 20,000 barrels a day. 

PetroVietnam has already invested in two other blocks in Peru. It signed an exploration and production contract with Perupetro in 2007 to jointly develop Block 162 in the Ucayali Basin. 

PVEP signed a contract last year to buy oil assets at Block 39 from Burlington Resources Peru Ltd.
Block 39, also in the Maranon Basin, is jointly operated by Perupetro, Repsol Exploracion Peru and Reliance Exploration & Production DMCC.
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