Monday, July 02, 2007

Aabar acquires offshore oil block in Vietnam

aabar acquires stake in block 07 & 08/97 offshore southern vietnam


aabar acquires stake in block 07 & 08/97 offshore southern vietnam
Aabar Petroleum Investments Company PJSC (“Aabar”) announces that its wholly owned subsidiary, PearlOil (Ophiolite) Limited, has entered into a binding agreement to acquire a 15% working interest from Vietnam American Exploration Company LLC (“VAMEX”) in the production sharing contract for Block 07 & 08/97, offshore southern Vietnam. The agreement is subject to government approval.

Block 07 & 08/97 covers an area of 4,915 square kilometres and is located at the southern margin of the Nam Con Son Basin. It lies on a trend of oil and gas discoveries including BP’s producing gas fields at Lan Tay and Lan Do. The block is adjacent to the Aabar-operated Block 06/94 signed earlier this year.

The area has been little explored in recent years due to the moratorium related to the territory boundary line between Vietnam and Indonesia, which was resolved in 2003.
On government approval for a previous farm-out agreement, VAMEX will hold a 55% working interest in Block 07 & 08/97 and Premier Oil Vietnam South B.V. (“Premier”) will hold the remaining 45% as well as operatorship of the block. On formal completion of Aabar’s acquisition, Aabar, VAMEX and Premier will hold 15%, 40% and 45% respectively.

“We are delighted to be entering this highly prospective contract area and look forward to working with VAMEX and renewing our partnership with Premier, which has demonstrated its knowledge of the exploration play in the Nam Con Son Basin with its recent discoveries in Block 12E. We are very pleased with our progress in Vietnam so far and with the encouragement provided by PetroVietnam. Aabar looks forward to the continued growth of our portfolio in the country,” said Chris Gibson-Robinson, Aabar’s Vice President Operations and New Business Development (Southeast Asia).

Aabar is an oil and gas exploration, production and drilling company headquartered in Abu Dhabi and is a public joint stock company listed on the Abu Dhabi Securities Market. Aabar has two divisions, Dalma Energy, which is focused on drilling operations, and Pearl Energy, which is engaged in exploration and production in Southeast Asia. Aabar’s net working interest production currently stands at more 20,000 barrels of oil per day from four fields in Indonesia and Thailand. The group plans to drill 10-15 exploration wells in 2007.
VAMEX is an international oil and gas exploration company with operations in Vietnam and Peru and a wholly owned subsidiary of UK-based Pitkin Petroleum Limited.
Premier Oil Vietnam South B.V. is a wholly owned subsidiary of Premier Oil plc, an independent oil and gas company with producing interests in the UK, Indonesia, and Pakistan.