National oil firm Petronas and counterpart PetroVietnam inked a pact today to jointly explore and develop hydrocarbon resources off the coast of Vietnam.

Under the contract signed in Hanoi, Petronas said they would form a joint venture company, called Lam Son Joing Operating Co, to operate Blocks 01/97 and 02/97 in the Con Son Basin near Vung Tau.

The two blocks, to be shared 50-50 by PetroVietnam Exploration and Production Co. and Petronas Carigali Overseas, cover an area of 11,800 square kilometres and have gas and oil potential, it said.

Lam Son was expected to conduct geological and geophysical studies this year and planned to drill one firm exploration well and another optional well in 2004, it said in a statement.

The award of the blocks was the result of negotiations between Petronas and PetroVietnam last year, and was the fifth awarded to Petronas since its foray into Vietnam 11 years ago.

New platform

In 1991, Petronas was awarded the contract for Blocks 01 and 02. The Ruby field, discovered in these blocks, came on stream in 1998 and is now producing about 19,000 barrels of oil daily.

Last year, it signed three contracts for Blocks 10 and 11-1, 46-Cai Nuoc and 46/02.

The statement said Petronas and its partners planned to drill seven exploration wells in the blocks. It would also install a new platform and drill nine new wells to develop the Ruby field in 2004.

Petronas was also in talks with PetroVietnam to develop the Emerald gas field in Blocks 01 and 02. - AFP