Exploration and Production
In Vietnam, Chevron’s exploration and development activities are managed by our subsidiary Chevron Vietnam, Ltd. We are working with national oil company PetroVietnam, the Vietnamese government and other stakeholders to develop an offshore gas project and transportation pipeline. This project is known as the Block B Gas Development Project.
Plans call for the pipeline to deliver natural gas from the offshore fields to existing and new gas-fired power plants in the Mekong Delta.
Exploring for Natural Gas in the Malay Basin
Chevron is the operator in two production-sharing contracts (PSCs) in Vietnam. They are in the northern part of the Malay Basin, off the coast of southwest Vietnam. Chevron has a 42.4 percent interest in a PSC that includes Blocks B and 48/95.Chevron also has a 43.4 percent interest in a PSC that covers Block 52/97.
Supplying Future Natural Gas Power Plants
The Block B Gas Development Project is designed to deliver the natural gas from our PSCs in the Malay Basin to existing and proposed power plants in southern Vietnam. Commercial negotiations for the project continued in 2013. The project includes installation of wellhead and hub platforms, a floating storage and offloading vessel, field pipelines, a living-quarters platform, a central-processing platform and a pipeline to shore. The targeted maximum total daily production is 640 million cubic feet of natural gas and 21,000 barrels of condensate. A final investment decision for the development is pending resolution of commercial terms. Concurrent with the negotiations, the company is also evaluating these assets for possible divestment.
In conjunction with the offshore development, the company has a 28.7 percent nonoperated working interest in a pipeline project that would deliver natural gas from the development to utility companies in southern Vietnam.
Our Lubricants Business
Our subsidiary Chevron Lubricants Vietnam Limited manufactures and sells motor oils and marine, industrial and specialty products through 60 distributors to more than 12,000 retail outlets nationwide. We also sell directly to large industrial and marine customers. Our lubricating oil blending plant is in Haiphong, in northern Vietnam.
Updated: May 2014