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Vietnam banks to finance offshore drilling

Three Vietnamese banks will jointly provide a loan of up to $51 million to the PetroVietnam Exploration and Production Corporation (PVEP) to exploit oil and gas in the Ca Ngu Vang (Gold Tuna) oilfield, reported local news agency VNS.

Under a credit agreement signed in Ha Noi on Thursday with the Vietnam International Commercial Joint Stock Bank (VIB), Asia Commercial Joint Stock Bank (ACB) and the Sai Gon-Ha Noi Commercial Joint Stock Bank (SHB), the PVEP would use the five-year loan to pay for the development and exploitation of oil and gas at the oilfield, located southeast of Viet Nam’s continental shelf.

VIB was the largest provider with $18.62 million or 36.42 percent of the total credit. Addressing the signing ceremony, VIB General Director An Thanh Son said that co-operation with the PVEP was a basis for his bank to further develop ties with PetroVietnam (PVN) as well as with other PVN member firms, and it was an affirmation of the bank’s policy of supporting business.

The Ca Ngu Vang oilfield in the Cuu Long Basin, offshore Viet Nam, was prospected in October 2002. A plan for the oilfield was approved in late 2006 with the participation of the PVEP, Soco Viet Nam Ltd of the UK, the PTTEP Hoan Vu Co Ltd of Thailand and the Hoan Vu Joint-venture Company.

Exploitation of the field began in July last year with a daily output of between 10,000 and 20,000 barrels of oil and 25-50 million cu.m of natural gas.

"To meet the demand for loans for the PVN and the economy in general, VIB completed procedures to increase its charter capital from 2.2 trillion dong to 2.4 trillion dong for the second time of the year," Son said.

The bank would issue 20 million shares for the charter capital increase with a total face-value of VND200 billion, he said. (1$=17,848 dong)

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