Mitra Energy Limited (MEL) has signed two Production Sharing Contracts (PSCs) with Petrovietnam (PVN) for offshore Blocks 19 & 20 through its subsidiary companies Mitra Energy (Vietnam Phu Quy) Pte Ltd and Mitra Energy (Vietnam Rang Dong) Pte Ltd. The blocks are located in the Western Nam Con Son Basin, offshore Vietnam, each covering an area of approximately 4,500 square kilometres in water depths ranging from 50 to 100 metres.

Both PSCs were awarded to a consortium made up of MEL, Kuwait Foreign Exploration Company (KUFPEC) and Singapore Petroleum Company (SPC) following the 2008 Nam Con Son Basin bid round. The individual PSC entities and percentage working interests in the blocks are as follows:

Block 19 Mitra Energy (Vietnam Phu Quy) Pte Ltd: 40% (Operator) KUFPEC Vietnam (Block 19) Ltd: 40% Singapore Petroleum Vietnam (Block 19) Ltd: 20%

Block 20 Mitra Energy (Vietnam Rang Dong) Pte Ltd: 40% (Operator) KUFPEC Vietnam (Block 20) Ltd: 40% Singapore Petroleum Vietnam (Block 20) Ltd: 20%

The two new PSCs lie adjacent to MEL’s existing PSC over Blocks 28 & 29/03 and thus strengthen its exploration position in the Western Nam Con Son Basin. The new PSCs are interpreted to offer similarly exciting exploration objectives to MEL’s existing PSC within an as yet undrilled Tertiary half-graben.

Acquisition of a 4,500 line km 2D seismic programme over the two blocks commenced in mid-June 2009 as part of the PSC commitment work programmes. The approval of the pre-signing acquisition by Petrovietnam allowed the PSC consortia to take advantage of commercially attractive seismic vessel rates and commence acquisition in the optimum weather period. Acquisition is expected to be completed by the end of August 2009.

Tags: Mitra Energy, PetroVietnam