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Vietnam may yet turn out to be well of plenty
PUBLISHED: 25 Oct 2011 PRINT EDITION: 25 Oct 2011
Edited by Sarah Thompson, Christine Lacy and Stephen Shore
Oil and gas investors looking for success stories from the emerging exploration hot-spot of Vietnam have
been disappointed of late, with news of unsuccessful wells by both BHP Billiton and Santos.
But all that may change should unconfirmed whispers about a major discovery by oil giant ExxonMobil turn
out to be on the mark.
Exxon kicked off its exploration campaign in its three offshore blocks in the Song Hong Basin in April, startling
the market by moving straight from analysing legacy 2D seismic data to drilling skipping the step of acquiring
a more reliable 3D seismic survey.
The first well is understood to have been dry but was drilled some way to the east in Exxon’s permits,
whereas the main fairway is further inshore, and also further distant from waters subject to a testy dispute
over sovereignty with China.
Now, Exxon’s second well, the Ca Voi Xanh 2X probe in Block 118, is rumoured to have come up trumps, with
a discovery of between 4 trillion and 7 trillion cubic feet of gas. Such a find would be a considerable boon for
explorers off Western Australia given it would be big enough on its own to underpin a single liquefied natural
gas production unit.
In Vietnam, of course, the focus is on gas for the domestic and regional market rather than LNG, but if
confirmed, a discovery would be great news for junior explorer Neon Energy, which is seeking another partner
to help fund exploration wells in acreage that lies immediately south of Exxon’s.
Neon and existing partner KrisEnergy are targeting wells in both their Block 120 and Block 105 permits next
year.
A major find would also give a timely boost to national oil company PetroVietnam’s 2011 bidding round for
exploration acreage, for which expressions of interest are being sought and in which Neon has expressed
some interest.
Malaysia’s Petronas, France’s Total and the UK’s Premier Oil have all chalked up successes off Vietnam,
while Russia’s Gazprom is understood to be drilling a third appraisal well in its acreage, suggesting it has also
found something warranting investigation.