VUNG TAU, VIETNAM – April 4, 2025 – Eneos Drilling, a key subsidiary of Japan's Eneos Xplora, has been awarded a significant drilling contract by Japan Vietnam Petroleum Company (JVPC) for a two-well campaign in Block 15-2, located offshore Vung Tau, Vietnam. The agreement will see Eneos Drilling deploy its advanced jack-up rig, the Hakuryu-14, for an estimated 110-day program slated to commence between late May and mid-June 2025.
The contract follows closely on the heels of JVPC's successful negotiation and signing of a new 25-year Production Sharing Contract (PSC) for Block 15-2 with PetroVietnam Exploration Production Corporation (PVEP), the upstream arm of Vietnam's national oil and gas conglomerate, PetroVietnam. The new PSC, effective from April 7, 2025, replaces the previous agreement which was due to expire this month.
According to statements released by PetroVietnam, the renewed PSC and the subsequent drilling program underscore the commitment of both JVPC and PVEP to sustain and enhance hydrocarbon exploration and production activities within the prolific Rang Dong and Phuong Dong fields, which lie within Block 15-2. The collaboration aims to not only maintain current output levels but also to actively pursue opportunities for reserve enhancement within the contracted area.
Spanning approximately 415 square kilometers in the central and northeastern sectors of the Cuu Long sedimentary basin, Block 15-2 boasts average water depths ranging from 57 to 60 meters. The block is home to the significant Rang Dong and Phuong Dong oil and gas fields, which have been key contributors to Vietnam's energy sector. JVPC reports that cumulative oil production from the block had surpassed 250 million barrels by September 2024, highlighting the area's substantial historical output. Notably, JVPC also prides itself on maintaining an exceptional safety record, having achieved over 21 consecutive years without any lost time injuries (LTIs) in its operations.
The Hakuryu-14 rig, a robust self-elevating cantilever jack-up rig capable of operating in water depths up to 400 feet, was constructed in 2018 by PPL Shipyard utilizing a proven Baker Marine Design. Its selection for this campaign underscores Eneos Drilling's technical capabilities and the suitability of its fleet for the operational requirements of Block 15-2.
The Rang Dong field features a critical piece of offshore infrastructure: MODEC's Floating Storage Unit (FSO), also named Rang Dong. Positioned in approximately 60 meters of water, the FSO has a daily receiving capacity of 60,000 barrels of oil and a total storage capacity of 350,000 barrels. The continued operation of the FSO is crucial for the efficient handling and export of crude oil from the field. Current information suggests the FSO is under charter until April 2026, with two remaining one-year extension options that could potentially keep it operational until 2028.
JVPC's long-standing involvement in Block 15-2 dates back to 1992, a period that witnessed the significant oil discoveries leading to the commencement of production at the Rang Dong field in 1998 and the Phuong Dong field in 2008. Under the new PSC, JVPC will retain its 45% participating interest and continue to serve as the operator, while PVEP holds the remaining 55%. This arrangement reaffirms the collaborative spirit outlined in a Memorandum of Understanding (MOU) signed by the two companies in 2021, which paved the way for the extension of their partnership beyond the expiration of the previous contract.
This latest drilling contract signifies a continued investment in Vietnam's offshore energy resources and highlights the enduring partnership between Japanese and Vietnamese energy entities. The deployment of the Hakuryu-14 is anticipated to contribute significantly to the ongoing productivity and potential future growth of the vital Block 15-2 asset.
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