JX Nippon secures license extension for Phuong Dong oil field in Vietnam

first_img JX Nippon is partnered by PetroVietnam in the Phuong Dong oil field. Photo: courtesy of D Thory from Pixabay. JX Nippon Oil & Gas Exploration has secured license extension by another five years to carry out petroleum operations in the Phuong Dong oil field from the Vietnamese government.The license for the offshore Vietnamese oil field contained in Block 15-2 was due to lapse in April 2020.JX Nippon is partnered by PetroVietnam in the Phuong Dong oil fieldJX Nippon’s subsidiary Japan Vietnam Petroleum is the operator of the Phuong Dong oil field. Japan Vietnam Petroleum is partnered in the offshore field by PetroVietnam Exploration Production (PVEP), a subsidiary of Vietnam’s national oil company PetroVietnam.The duo is said to have been granted the extension based on Japan Vietnam Petroleum’s contribution through the long-term and stable operational history.Apart from the Phuong Dong oil field, Japan Vietnam Petroleum operates the Rang Dong oil field, which is also contained in the same block.In 2013, the five-year license term extension was given for the Rang Dong oil field to implement the Hydrocarbon Gas EOR. Following that, the license term was extended from April 2020 to April 2025 by the Vietnamese government.Japan Vietnam Petroleum entered into a production sharing contract for Block 15-2 in 1992, after which the company found oil/condensate and gas in the offshore concession. The JX Nippon subsidiary started production in Rang Dong and Phuong Dong oil fields in 1998 and 2008, respectively.Japan Vietnam Petroleum has stakes of 46.5% and 64.5% in Rang Dong and Phuong Dong oil fields, respectively. The company has been carrying out the development and production operations in the two Vietnamese oil fields with PVEP and Perenco Rang Dong.JX Nippon said that the total oil and gas produced in Block 15-2 from both the Rang Dong and Phuong Dong oil fields has reached nearly 230 million barrels and 370 billion cubic feet, respectively till date.JX Nippon stated: “We intend to maintain and strengthen our long-term good relationship in Vietnam and to stably generate the cash flow and maximize the value of project through our E&P business activity as Operator.”Earlier this year, the Japanese oil and gas company started production alongside its partners in the Culzean Gas Field and the Mariner Oil Field, both located in the UK North Sea. The license for the Phuong Dong oil field contained in Block 15-2 was due to expire in early 2020last_img read more