Host Countries: VIETNAM

Transcription

1 CCOP-PPM PROJECT The 3rd PPM Seminar September 2004, Chiang Mai, Thailand Presentation of the Non-Case Study Host Countries: VIETNAM By Mr. NGUYEN VAN DAC PPM National Coordinator PetroVietnam OUTLINE Introduction Experiences from PPM workshops Disseminations of PPM case studies Development of marginal fields Conclusion and recommendation 1

2 INTRODUCTION VIETNAM participates in the following PPM case study workshops: 1 st China-Chengdu, October nd Philippines-Manila, January nd Indonesia-Bandung, March rd Cambodia- Siem Reap, March-April nd China-Chengdu, May rd Philippines-Baguio, Aug 2004 Trinh Xuan Cuong Tạ Vinh Hien Bui Thieu Son Nguyen Trong Tin Ngo Thi Viet Nga Nguyen Manh Huyen Nguyen Ngoc Hoan Trinh Xuan Cuong Nguyen Xuan Thanh Nguyen Quang Bo Bui Thieu Son We would like to thank the CCOP for giving us opportunity to participate in the PPM case study workshops. We would like to also thank the host countries for the hospitality during the case study workshops and field trip EXPERIENCES FROM PPM WORKSHOPS The workshop topics are very interesting and beneficial, especially the following issues: The system of petroleum contracts (fiscal regime evaluation). Impact of fiscal regime (Taxes, Profit Sharing, Cost Recovery...) on petroleum project. Prospect/play analysis, segment analysis and the full-cycle economic analysis. Using the software GEO-X for risk analysis and hydrocarbon potential assessment. Exchange ideas, experience and sharing knowledge: Petroleum Management and Policy of Norway and China Experiences from exploration, field development and production, especially tight gas sandstone reservoirs in the Western depression of Sichuan basin Offshore field development options and strategy Capex and opex estimation 2

3 Challenges Risk and economic analysis for petroleum project Exploration, field development and production for tight sandstone reservoirs Low exploration activity in the deep water and Pre-Tertiary (Mesozoic) basins Development options and strategy of marginal field DISSEMINATION OF PPM CASE STUDIES We have reported to management after the participation in each case study workshop and have discussions between PPM participants and VITRA working team Upgraded GeoX 5.2 (module Fullcycle) for resource assessment and risk analysis and the full-cycle economic analysis of VITRAII project Planned to evaluate and define development concepts for some marginal fields (1 onshore gas field, 1 offshore gas field and 1 offshore oil field): * Hydrocarbon potential assessment and risk analysis. * Technologic field development options * Full-cycle economic analysis. * Consider the possibilities to revise the contract fiscal terms for Incentive projects (marginal field, deep water...) to attractive foreign investments and increase petroleum activities. 3

4 DEVELOPMENT OF MARGINAL FIELDS Definition of marginal field Main features (Criteria) to Define and evaluate marginal fields: Size and characteristics of the field (characteristics of reservoir, depth and Pressure...) Geographical condition (water depth, offshore, onshore, alone field, infrastructure...) Current development technology (adequate technology for CO2 removing...) The legal and Current fiscal regime (Taxes, Profit Sharing, Cost Recovery...) Oil and gas price Development of marginal field is not beneficial in the condition of current technology and fiscal regime. It is required to have an adequate advanced technology and incentive fiscal regime (package) from the Government to develop marginal fields effectively and beneficially (Taxes, Profit Sharing, Cost Recovery...) Development of marginal fields in Vietnam We have discovered some marginal fields: Onshore gas fields with small size, deep and tight sandstone reservoirs Offshore gas fields with small size, tight sandstone reservoirs Offshore gas fields with giant size, but very high content of CO2 (60-90%) Offshore gas fields with medium size with deep sandstone reservoirs and high pressure Offshore oil fields with small size. Limitations (current disadvantage) for development of marginal fields: Drilling cost is very high for deep reservoirs and high pressure Issues concerning to CO2 removing technology for gas fields with very high content of CO2 ( >60%-90%) Gas market have not yet been developed. 4

5 Incentives offered to oil companies The legal and fiscal regimes of Vietnam are continuously revised in order to attract foreign investments: Special tax rate, tax holidays: Incentive projects Other projects Royalty for oil for gas Corporate Income tax Cost recovery: 50-70% 35-60% Remittance Tax: 7% 10% Tax Holidays: 2 first years; 50%-next NA Conditions and applications are more and more simple, flexible and speedy PV participate in the petroleum contract from the beginning to carry the risk together with the investors Contracts: PSC, JOA, BCC... Negotiable. It should be reasonably considered type and fiscal terms for each petroleum contract Technologies are applied to develop marginal fields Hydro-fracturing is the major method to stimulate the reservoirs Applying adequate Offshore technologic options for Dai Hung field development: * Dai Hung field located approximately 250 km offshore from the coast of Vietnam at a water depth of approximately 110 meters * BHPP was put the field into production in October 14, 1994 * 1997 The Project was transferred to Malaysian Petronas Carigali * 1999 Petronas Carigali decided to leave the Project * Vietsovpetro has been assigned and now operates the Dai Hung oilfield since February 1999 so far. 5

6 DaiHung Phase 1 Development (EPS) General Field layout New option for Dai Hung field development 6

7 Sharing of existing infrastructures CONCLUSION AND RECOMMENDATION PPM project has met its planned targets for the year All member countries have benefited through sharing of experiences and knowledge in petroleum operation and management. Vietnam has benefited new ideas and gained valuable experience from PPM case study host countries and has partly applied it in VITRAII project. The evaluation of economic effectiveness and identification of the petroleum fiscal terms play a very important for petroleum management, so it would be recommended to continue exchange more details on fiscal regime. Need to use real data from case study host country. Need to select and evaluate marginal fields on different condition such as onshore, offshore, deep water, deep reservoirs and high pressure... especially the following issues: Contract types and fiscal term Field development options 7

8 Thank You Very Much 8