S. Korean oil companies increase production in Vietnam

SEOUL, Oct. 21 (Yonhap) -- South Korean oil companies will increase production at
an offshore field in Vietnam that will help raise the country's petroleum
self-sufficiency target, the government said Tuesday.
The move by Korea National Oil Corp. (KNOC) and SK Energy Co. follows four years
of detailed examination of the so-called Golden Lion (Su Tu Vang) field at the
15-1 Block in the Mekong Basin, the Ministry of Knowledge Economy said.
Total production at Block 15-1 will be increased from 50,000 barrels per day at
present to 100,000 barrels by the end of the year, it said.
"Taking into account the South Korean stake, the amount of oil that can be taken
over by local companies will reach around 23,000 barrels per day from 12,000 at
present." said Kim Young-sam, head of the ministry's petroleum development
division.
State-run KNOC has a 14.25 percent stake, with SK Energy holding a 9 percent
interest in the field.
The Vietnamese government holds a 50 percent controlling interest, with
U.S.-based Conocophillips and France's Geopetrol claiming 23.25 percent and 3.5
percent shares respectively.
The oil block is the largest, where a South Korean company holds stake in, and is
estimated to hold 600 million barrels of crude. This makes it the fourth largest
in the Southeast Asian country.
The official added that once full scale production takes places at the Golden
Lion, South Korea's self-sufficiency in oil from fields controlled by local
companies can edge up 0.4 percentage point to 4.6 percent of total domestic
demand.
Seoul is aiming to push up self-sufficiency to 5.7 percent by the end of this year.
yonngong@yna.co.kr
(END)
Download this as a file