The PetroVietnam Exploration Production Corporation (PVEP) has signed a deal on the transfer of a 5-percent interest and the administration right in Block 15-1/05 to Murphy Cuu Long Bac Oil Co. Ltd.

According to PVEP, Block 15-1/05 is located in the Cuu Long Basin off the southern coast of Vietnam managed by the PetroVietnam Domestic Exploration Production Operating Company Limited (PVEP-POC).

The Product Sharing Contract of Block 15-1/05 was signed on April 11, 2007 between the Vietnam National Oil and Gas Group (PetroVietnam) and two contractors, namely PVEP (75 percent – administrator) and SK Corporation (25 percent).

In August 2015, PVEP and Murphy inked an agreement on interest transfer, which recognised the participation of Murphy in the Block 15-1/05 project.

After negotiations, they reached a consensus on transferring to Murphy 5 percent of interests and the administration right of PVEP under the Product Sharing Contract of Block 15-1/05.

Speaking at the signing ceremony, PVEP Deputy Director General Pham Nhu Khanh said that in the context that the world’s oil price has yet to recover, the development of small and marginal oil fields faces a lot of difficulties, and requires solutions and experience.

Therefore, cooperating with Murphy – a partner experienced in developing small and marginal oil fields- will help facilitate the progress of the project.-VNA