A unit of Russian state oil firm Rosneft, Rosneft Vietnam BV, has started drilling at a new production well in waters off the southern coast of Vietnam, the company said in a statement posted to its website on Tuesday.
The drilling is significant for Vietnam, which has been struggling to maintain its crude oil and gas output amid already declining production from its key fields and ongoing pressure from China in the disputed waters of the South China Sea.
The LD-3P well explored by Rosneft is part of the Lan Do gas field in Block 06.1, Rosneft said. The field has initial natural gas reserves of 23 billion cubic metres, according to the statement.
Block 06.1 is 370 kms (230 miles) southeast of Vietnam’s coast and is not close to the U-shaped “nine-dash line” that marks the vast area of the South China Sea claimed by China, where the two countries have been embroiled in maritime disputes. Read More