Conoco Increases Vietnam Position, Creates Immediate Earnings.Business/Energy Editors NOTE TO MEDIA: Photo available on BW PhotoWire/AP PhotoExpress, NewsCom, PressLink and on Business Wire's Web site at www.businesswire.com HOUSTON--(BUSINESS WIRE)--Feb. 21, 2000 Conoco (NYSE NYSE See: New York Stock Exchange :COCA coca (kō`kə), common name for shrubs of the genus Erythroxylum, particularly E. coca, of the family Erythroxylaceae, and found abundantly in upland regions and on mountain slopes of South America, as well as in Australia, India, ) (NYSE:COCB) has acquired a 30-percent working interest through a farm-in on Block 15-2 in the shallow water See:
The first phase of production in Block 15-2 is currently producing about 35,000 barrels per day Barrels per day (abbreviated BPD, bbl/d, bpd, bd or b/d) is a measurement used to describe the amount of crude oil (measured in barrels) produced or consumed by an entity in one day. of oil from the Rang Dong field. Conoco's current net production is about 6,000 barrels per day. The second phase of development drilling will begin in second quarter 2000. Conoco (U.K.) Gama Ltd. will acquire the interest from the holdings of the Japan Vietnam Petroleum Company (JVPC), a Nippon Mitsubishi Oil Corporation-led group. Petrovietnam, Vietnam's state oil company, is also a partner. Conoco also announced it has signed a Heads of Agreement Heads of Agreement A non-binding document outlining the main issues relevant to a tentative partnership agreement. Notes: It is the draft used by lawyers when drawing up the contract. It serves as a guideline for both parties before any documents are legalized. with Petrovietnam and the Korean National Oil Company (KNOC KNOC Korea National Oil Corporation ) on Block 16-2, paving the way for Conoco to become the operator with a 40-percent working interest in the block. The petroleum contract is expected to be signed in mid-March. "These two strategic initiatives give Conoco an outstanding position in the Cuu Long Basin and are part of our effort to broaden and expand Asia Pacific into a very significant business area for Conoco," said Executive Vice President Rob McKee. "The holdings complement our existing acreage in the region and enable us to realize the synergies that can come from an integrated development program. "Furthermore, we expect Block 15-2 will yield immediate production growth for the company, continuing over the next several years." McKee said that he was especially proud of the Conoco team that negotiated the farm-in agreement. "Competition for the interest on Block 15-2 was intense, and we believe it was Conoco's unique technological approach to solving the complex reservoir issues that proved to be the determining factor in JVPC's decision," he said. Additionally, the company holds a 23.25-percent interest in Block 15-1 -- also located in the Cuu Long fairway -- and plans to drill its first exploratory well in mid-2000. Conoco, celebrating its 125th anniversary, is a major, integrated energy company based in Houston and active in 40 countries. |
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