KUALA LUMPUR Malaysian national oil firm Petronas inked an agreement Thursday with PetroVietnam and Canada's Talisman to jointly explore for oil and gas resources in waters off Vietnam.

Petronas said that the three companies would form a joint venture company under the contract, called Truong Son Joint Operating Company, to operate Block 46/02 off the coast of Vietnam.

The award of the block was the result of a bidding exercise by PetroVietnam in early 2002, Petronas said in a statement.

Share equities

PetroVietnam Exploration and Production Company will hold a 40 percent share in the new outfit, followed by Talisman Vietnam Ltd and Petronas Carigali Overseas Sdn Bhd with 30 percent each.

Talisman Energy Inc., Canada's second largest oil explorer and producer was established in 1993.

It is a major North American natural gas supplier and over the past decade has successfully expanded into a number of international areas.

State-owned PetroVietnam, officially known as Vietnam Oil and Gas Corporation, was established in 1975 and has over 30 subsidiaries and associated companies. It operates globally, as well as in Vietnam.

Four blocks

Thursday's signing of the contract will increase the number of petroleum blocks that Petronas is involved with in Vietnam to four.

Petronas said phase one of the exploration work would start early next year, with contractors processing 300 square kilometres (120 square miles) of 3D seismic data and making other preparations for the drilling of four exploration wells.

Block 46/02 is on the southwestern continental shelf of Vietnam, about 144 kilometres (86 miles) from Ca Mau, and covers about 12,150 square kilometres with oil and gas potential. AFP