Vietnam is making a concerted effort to develop its oil and gas resources in line with rising energy demand. Arrow's Vietnamese office is currently progressing a number of opportunities to develop the country's vast coal seam gas resources.
 |
 |
In January 2008, Arrow Energy signed a major Production Sharing Contract (PSC) with PetroVietnam, a subsidiary of the Vietnamese Government. Under the terms of the PSC, Arrow will receive a 70% interest in a highly prospective coal seam gas tenenment area of 2743 km2. The tenement, at its nearest point, is only 100 kilometres from Hanoi and is adjacent to the Thai Binh industrial area.
The PSC requires Arrow to drill eight wells on the block over a 12 month period. We expect that exploration drilling will begin in late 2008.
The company belives the PSC to be a technically and commercially attractive proposition. A conventional gas field has already been developed in this area and gas supply infrastructure is in place.
