Japanese firms sign agreement with PetroVietnam

The projects will develop gas available in Blocks 05-1b & 05-1c in the South China Sea.

Japan is soon going to help Vietnam extract gas from the South China Sea. Two Japanese firms have signed an agreement with the Vietnamese state-owned oil and gas giant PetroVietnam.

The aim is to boost the Sao Vang Dai Nguyet project by development and selling gas located in the area.

As per the information by an official of PetroVietnam: "The development of the project is significant since exploration and production activities have slowed down in recent years because of tensions in the South China Sea, the ongoing corruption crackdown, and persistently low crude oil prices."

The projects will develop gas available in Blocks 05-1b & 05-1c in the South China Sea.

Amid pressure from China, PetroVietnam asked Repsol to halt its offshore oil project in the nearby block.

Vietnam has billions of tons of crude oil and gas reserves in the waters surrounding it. Vietnam has between 3,3 billion and 4.4 billion tons of crude oil. State Owned Oil Gas PetroVietnam produces between 22 million and 33 million tons of oil equivalents annually.

The project is expected to Vietnam's production of oil and gas.