Chevron Finds Gas Off Vietnam

Chevron Corp. has found at least 6 trillion cubic feet (170 billion cubic meters) of natural gas in the Malay Basin offshore southwest Vietnam, it said Wednesday.

The company said in a statement that a three-month drilling program ended in March confirmed a greater potential than first believed.

"This latest drilling could add up to 1 trillion cubic feet of additional gas resources," said Nicole Hodgson, external relations adviser for Chevron Asia South, in a separate e-mail. Earlier estimates had put Chevron's find at 5 trillion cubic feet (142 billion cubic meters).

Chevron Vietnam operates several exploration blocks in the Malay Basin on behalf of partners PetroVietnam Exploration and Production Co., Japan's Mitsui Oil Exploration Co. Ltd., and Thailand's PTT Exploration and Production PCL.

Timing of first production is contingent on further commercial negotiations with PetroVietnam, Chevron said in its statement.

Maximum total production of about 500 million cubic feet (14 million cubic meters) of gas a day is projected within 5 years of start-up, it said. That would be worth about US$5 million a day at current prices for natural gas futures.

"We are all working hard to finalize the commercial arrangements with PetroVietnam in order to move this important project quickly into the next phase," said Hank Tomlinson, Vietnam country manager for Chevron.