PetroVietnam Signs Mou with Murphy Oil USA

Source Press Release
Company Murphy Oil CorporationPetroVietnam 
Tags Asset Deals, Deals, Upstream Activities
Date July 13, 2015

In the framework of the official visit to the United States, on 8th July 2015 afternoon at the U.S Chamber of Commerce, the General Secretary of Vietnam’s Communist Party Nguyen Phu Trong witnessed the signing of important cooperation documents between enterprises of Vietnam and the United States.

Mr. Nguyen Xuan Son, Chairman of the Board of Directors at Petrovietnam and Mr. Roger W.Jenkins, President & CEO at  Murphy Oil Corporation signed the Memorandum of Understanding (MOU) between the two groups in order to promote the opportunities for cooperation between Murphy and  Petrovietnam in the oil and gas projects in Vietnam, the United States and a third country.

Reportedly, Murphy Oil Corporation started operation in mid 20th century. Over six decades of development, so far its activities have spread over the Gulf of Mexico, the Mediterranean, Southeast Asia and Australia with the verified reserves of about 495.6 million barrels of oil and 1.15 billion cubic feet of gas. The average production is over 135 thousand barrels and 423 million cubic feet gas per day.

Murphy has financial potential, extensive experience and high technology in the oil and gas exploration and production activities, especially for the oil and gas objects in the new, offshore and deep water areas.

Murphy Oil considers Vietnam market as the potential area with long-term scale and strategy of development, and assesses PetroVietnam as the dynamic, efficient partner with cooperative goodwill. Murphy Oil pays special attention to participating in the development of Block B gas project, Malay - Tho Chu Basin in Vietnam, some Blocks in Cuu Long Basin. Besides the cooperation opportunities in Vietnam, Murphy Oil welcomes  PetroVietnam’s participation in the projects in the Gulf of Mexico.

On the same day, Chairman Nguyen Xuan Son, Vice President Nguyen Quoc Thap, Heads of Petroleum Exploration, Petroleum Production,International Relations, Investment and DevelopmentDivisions under Petrovietnam, and leaders of PVEP, PVGas, PVD, DQShad a meeting withMr. Raymond E Jones,ExxonMobil Vice President in the Asia - Pacific, and senior officials of the Group at Washington Hilton hotel.

2 years ago, July 2013, in Washington D.C, the framework agreement between Petrovietnam and  ExxonMobil on the deployment of Blue Whale Field Development Project offshore Vietnam was signed to develop a roadmap, strategy and overall plan for project implementation until the first gas was produced by using low calorific value gas.

Besides, ExxonMobil always assesses Vietnam market as an attractive destination for investment and it is planning further extensive cooperation with  PetrovietnamExxonMobil, with its goodwill, always hopes to be supported, facilitated by the State and ministries of Vietnam so that the cooperation between the two Groups is more and more developed and beneficial to both sides.

It is planned that in the most favorable conditions, around 2021, Blue Whale field will give the first gas and gas-based electrical products.

At the meeting, Mr. Raymond E Jones praised Petrovietnam and PVEP, the key unit under  PetroVietnam for their efforts in promoting the development of Blue Whale Project together with ExxonMobile. He informed of the project progress accomplished during the past time, the upcoming trade announcement for the Project and the planning for field development area. He also announced further plan and believed to continue receiving as much support as possible from  Petrovietnam and partners so that the project was implemented on schedule, as a basis for developing other projects.

Petrovietnam Chairman Nguyen Xuan Son appreciated  ExxonMobil’s goodwill to invest and cooperate in Vietnam and revealed particular interest to Blue Whale Project. The Chairman affirmed the cooperation agreements and contracts signed with ExxonMobil would be performed properly on the view of sharing and facilitating for the development. Both sides should immediately pay special attention and together seek solutions to such problems as gas consumers, gas prices and commercial conditions. Both sides should also have initiatives in seeking various gas consumers in the future in order to use gases with the most economic efficiency.

Petrovietnam Chairman Nguyen Xuan Son suggested  ExxonMobil find optimal technical and technological solutions to develop the gas field in the most effective way, with reduced costs and lower prices. On  PetroVietnam’s part, he would propose to the Government of Vietnam to find plan for construction of gas power plants in the Central region as well as mechanisms for development of gas consumption in the region. He also proposed to consider the gas price most appropriate to the project, the investment incentives that stimulate the development of the Project.

Source: EvaluateEnergy® ©2020 EvaluateEnergy Ltd