S. Korea-Vietnam oil venture

S. Korea-Vietnam oil venture

SEOUL (AP): A consortium of U.S., South Korean and Vietnamese companies will begin a US$54 million project to search for oil off Vietnam, South Korean officials said Wednesday.

The consortium involving Conoco Inc., Korea National Oil Corp. and Vietnam Oil and Gas Co. will explore a potential offshore oil field 70 kilometers (43 miles) south of Vung Tau off southeastern Vietnam for the next 25 years, they said.

The consortium plans to drill six holes in the 250-square kilometer (100-square mile) area which is believed to have an estimated reserve of 610 million barrels of oil worth US$13 billion, the officials said.

Conoco holds a 40-percent stake in the joint venture with the remainder equally split between the South Korean and Vietnamese state firms, they said.

The South Korean firm began exploring oil in Vietnam in 1992. It has already discovered an economically feasible oil depot there with an estimated reserve of 260 million barrels.