Vietgazprom suspends drilling offshore Vietnam

9/24/2012

Vietgazprom suspends drilling offshore Vietnam

BY DOMINIC CHOPPING

HANOI -- Bermuda based operator of oil and gas drilling and production units Northern Offshore said that Vietgazprom, currently leasing drillship Energy Searcher, has given notice that the last two wells of its four well program in offshore Vietnam will not be drilled at this time.

Vietgazprom is a joint operating company, a joint venture between Petrovietnam and Gazprom. The second and final well under the current contract is expected to be completed by late September 2012.

However, the company and Vietgazprom are currently in discussion to formally suspend the contract to allow for the drilling of the two remaining wells during 2013, at rates, terms and conditions to be mutually agreed at the time of resumption of the suspended program. Northern Offshore CEO Gary W. Casswell says: "While we are disappointed with the news from Vietgazprom, we continue to have a strong relationship and look forward to continuing the drilling program for them next year."

Dow Jones Newswires

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