Archived News: Oil Reserves

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Source of Spills Suggested by Vietnamese Agencies

14.06.07 For the first time, Vietnamese agencies have admitted that oil spills plaguing the southern coast of Binh Thuan province appear to be due to numerous offshore rigs. Although the announcement only addresses spills since February, there has been a recurring problem for for a number of years. At the same time this information was made public, a new 5km-slick washed ashore in Tam Thanh and Ngu Phung in Binh Thuan this week.

More Oil Found Off Binh Thuan Coast

24.03.07 The Thang Long Joint Operating Company (TLJOC) claims to have struck oil at its Te Giac Trang (White Rhinoceros) field located about 80 kilometers off the coast of Binh Thuan province. The initial test yielded an oil density that could produce 5,000 barrels a day, depending on the capacity of the oil rigs.

Thang Long company was established in 2005 between Canada’s Talisman, which holds a 60 percent stake, and the PetroVietnam Exploration and Production Company (PVEP) which holds the remaining 40 percent. The company has made two consecutive discoveries in less than two years. Its first oil discovery was at the Hai Su Trang (White Sea Lion) field off Binh Thuan Province last December.

Minor oil spills are becoming more frequent along the central coast in recent years. The causes of those spills still remains a mystery, officially, and no connections have been made between the offshore drilling and these spills. However, these spills do hurt local ecosystems and have caused some economic losses in the tourism industries the last two seasons. Fortunately the effects seem to dissipate after a few weeks, but care must be taken to prevent continued pollution of the local environment and damage to the local tourism industries do to new spills.

Sumitomo Seeks Natural Gas in Binh Thuan

10.08.06 In a recent interview with the Tuoi Tre, Japanese Sumitomo Corp Vice President Shuji Hirose said that his company will invest in a gas-power project in Binh Thuan province. Hirose declined to disclose the amout of the investment, however last February the corporation announced it was considering building a US$500million electric-power plant in the province at Ham Tan.

PetroVietnam Contracts Indian Partner

25.05.06 The Viet Nam Oil and Gas Corporation (PetroVienam) signed a contract on May 24 with India's oil Company, ONGC Videsh Ltd (OVL) for blocks 127 and 128, offshore Viet Nam. The blocks are located in Phu Khanh Basin and cover areas of 9,246 and 7,058 square kilometes, respectively. Under the seven-year contract, ONGC will drill three wells for oil exploration during the first three years. PetroVietnam will be entitled to 20% of the benefits gained if oil is discovered.

Seven oil fields lie within Binh Thuan province waters, producing 90,000 barrels of crude oil per day. Plans are in the works to establish oil and gas refineries on Phu Quy Island and the mainland.

April and May of this year, an oily, gravel-like substance washed up on shores from Mui Ne south to Khe Ga lighthouse, causing concerns that an oil spill may have polluted the bay--perhaps during the recent typhoon. However, the actual cause is yet to be determined. Some residents report that this week the problem seems to be clearing up.

Possible Oil Spill Threatens Phan Thiet Beaches

14.05.06 For the last few weeks, beaches extending from Mui Ne to Khe Ga (the length of Phan Thiet Bay, Binh Thuan province) have been covered with increasing amounts of black tar and gravel. Local authorities have not been able to officially determine the source. All the signs however, point to a massive oil spill in the bay.

The waters off Binh Thuan province contain what is thought to be one of the richest sources of oil in the country. Seven oil fields lie within provincial waters, producing 90,000 barrels of crude oil per day. Plans are in the works to establish oil and gas refineries on Phu Quy Island and the mainland. A connection to the oil spill is plausible but yet unproven. The recent Typhoon Chanchu in the Philippines may also play a role. Several Vietnamese vessels and many lives were lost in the storm.

Several resorts have seen a reduction in guests, and locals as well as tourists are avoiding the beach due to health concerns. The size of the oil spill is yet undetermined, but any major spill could have detrimental effects to tourism, the economy and local way of life. Phan Thiet-Mui Ne represents the country's largest and most successfull beach resort area, with more resorts and spas than the rest of the country combined. Phan Phiet is also one of the country's top fishing ports, and Vietnam's largest and most celebrated producer of fish sauce. Even the beaches themselves hold a vast resevoir of shellfish and crustracions harvest by villagers for food.

Environmental issues in the area are becoming increasingly accute, but as of yet, largely ignored by developers. Garbage from the Ca Ty river and Phan Thiet Harbor wash up on Mui Ne Beaches. Most resorts have yet to comply with the new provincial regulations for waste water management. Grey water seeps onto the shore. In late summer, Phan Thiet Bay now suffers from algal blooms and die-offs, and the catalyst is likely increasing pollution levels. If Phan Thiet is to continue to develop successfully, it must begin to address more environmental concerns as part of its business plan.

Natural Resources Abound in Binh Thuan

13.01.06 A new oil field, Su Tu Nau (Brown Lion), has been discovered off Binh Thuan province in the group of Su Tu (Lion) oil fields at block 15.1. It is the seventh oil field to be discovered off the coast of Binh Thuan, with other potential sites still being explored. The Su Tu oil field sits in the Cuu Long sedimentary basin. Neighboring Su Tu Den has yielded 90,000 crude oil barrels per day since 2003.

Binh Thuan officials plan to establish a 4,000-5,000 ha oil and gas refinery which will be partly built on the mainland and on Phu Quy island. Research is underway to also build a gas-fueled power plant in the province.