Korea secures extended exploration rights in Vietnam's major oil block
A signing ceremony of Korea National Oil Corporation (KNOC)'s fresh exploration rights in Vietnam's major oil field is held in Hanoi, Vietnam, June 20. Courtesy of KNOC
The state-run Korea National Oil Corp. (KNOC) said Wednesday it has secured fresh exploration rights in Vietnam's second-largest oil field to continue its operations there until 2050.
KNOC and its Korean partners, including SK earthon, signed an agreement last week with Vietnam's national oil company, Petrovietnam, for the exploration rights, according to the Korean company.
Under the agreement, KNOC acquired an 11.4 percent stake in the 15-1 oil block, which generates approximately 34,000 barrels of oil on a daily average, to continue its development in the area through September 2050.
The agreement was signed to renew KNOC's exploration rights in the cited oil field ahead of the expiration of the existing concession in September.
KNOC has already been exploring the 15-1 block for more than 20 years after successfully completing exploration in 2000 and beginning oil production there in 2003.
The Korean company has produced some 430 million barrels of oil from the field as of 2024, raising $1.4 billion in cumulative profit, according to its officials.
KNOC and its partners plan to invest $1.3 billion to develop the "white lion" gas field within block 15-1. Once completed, the field is expected to supply 125 million cubic feet of natural gas per day to the Vietnamese market.
"Amid growing political instability and geopolitical risks in the Middle East, we have strengthened the effectiveness of (Korea's) resource diplomacy by cooperating with Vietnam, one of the country's key partners in Asia, to secure a stable energy supply," a KNOC official said.
"The agreement is expected to further strengthen mutual trust between the Korean and Vietnamese governments and help them establish a key hub for energy cooperation in Southeast Asia," the official added.