PRESS: Zarubezhneft may buy stake in Vietnamese block from KNOC

MOSCOW, May 27 (PRIME) -- Russian oil company Zarubezhneft is discussing buying a stake in the 11-2 gas block on the Vietnamese shelf from Korea’s KNOC, Kommersant business daily reported Monday citing industry sources.

Talks on the size of the stake that could be purchased by Zarubezhneft are still in process, while KNOC holds a 39.75% stake in the block.

Zarubezhneft declined to comment.

A consortium of Korea’s LG, Daesung, POSCO Daewoo, Hyundai and Seoul City Gas headed by KNOC owns a total of 75% in the project, while the remaining 25% belongs to Zarubezhneft’s partner Petrovietnam.

Production at the 11-2 block started in 2006 and could be halted by 2024 due to the field’s depletion, Kommersant said.

A source said that Zarubezhneft could use the prepared infrastructure of the 11-2 block in order to save costs on the development of its 12/11 block that is adjacent to the 11-2 block.

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