Idemitsu and Sumitomo signed the Production Sharing Contract (PSC), with Vietnam Oil and Gas Group (PETROVIETNAM), a state enterprise of Vietnam, for offshore South West Vietnam Blocks 39 and 40/02 on August 11, 2015. JOGMEC will provide equity capital up to 50% covering the exploration expenditures incurred by the subsidiaries of Idemitsu and Sumitomo for the project.
Within the framework of JOGMEC’s Cooperative Overseas Surveys and Studies Program (Cooperative Program), under the Joint Study Agreement between JOGMEC and PETROVIETNAM, Idemitsu and JOGMEC carried out recording of 2D seismic data and geochemical studies in offshore southwest Vietnam from October 2011 to August 2013. As a result, Idemitsu exercised the exclusive right to negotiate with PETROVIETNAM regarding the PSC with receiving Sumitomo as a partner. Finally, both Japanese companies and PETROVIETNAM concluded the PSC.