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Petrovietnam bid for South China Sea assets (upstreamonline)

Contested waters: Drilling in South China Sea is point of dispute between China and Vietnam Image courtesy of AP/Scanpix

Petrovietnam has lodged a bid for $1.5 billion of ConocoPhillips oil assets in the South China Sea, according to reports.

News wires  31 October 2011 10:56 GMT

A senior official the Vietnamese state oil and gas group confirmed the bid to Reuters on Monday.

The Hanoi-based group plans to do its utmost to acquire the assets, Nguyen Tien Dung, Petrovietnam’s Deputy Chief Executive Officer, told Reuters on Monday.

“The investment is in our country, so we are determined, with our largest possible efforts, to buy”, Petrovietnam deputy chief executive Nguyen Tien Dung told the wire service.

Barclays Capital is believed to be the adviser for the bid.

ConocoPhillips owns a 23.25% stake in a complex of three oil fields and one gas field in Block 15-1.

The stake includes the Su Tu Den and Su Tu Vang oilfields and two other fields that have not begun operations, according to Korea National Oil Corporation, one of the owners of the block.

Petrovietnam already owns 50% of Block 15-1 to KNOC’s 14.2%, South Korea’s SK Corporation’s 9% and Geopetrol of Monaco’s 3.5%.

The US major also owns 36% of the Rang Dong oilfield in Block 15-2 in the Cuu Long basin and 16.3% in the Nam Con Son gas pipeline project.

In July, Petrovietnam’s CEO said the company may buy the ConocoPhillips oil and gas interests in the South China Sea to help protect Hanoi’s territorial claims, adding that the US energy firm may sell the assets as it was scaling back its presence, possibly as part of a restructuring.

Energy assets are a touchy subject in the disputed waters. US oil giant Exxon Mobil Corp recently said it had discovered hydrocarbons in August off central Vietnam, in an area also claimed by China.

China on Monday warned foreign energy firms against exploration in the disputed South China Sea.


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  1. Pingback: Insight: Tough talk on South China Sea is not helpful (Jakarta Pos) « thủy tinh vỡ - November 1, 2011

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Age: Bính Thìn
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