July 15, 1998 Japanese refiner Mitsubishi Oil Co. is set to start oil output at its Rang Dong field offshore Vietnam within weeks, and to begin commercial shipments in September.
"Despite some delays, the construction of the required production facilities were finally completed, and we expect the first oil cargo (from the Rang Dong oil field) will be delivered to Japan in the autumn," said company president Yoshihiko Izumitani.
The start-up of commercial oil production was originally planned in the second quarter of 1998, but the construction and installation of the FPSO facilities have been hampered by technical problems and offshore weather conditions.
The FPSO facilities, built by converting a 120,000-metric-ton floating tanker, will store crude oil transported from the offshore oil field through a 2 km underwater pipeline. The FPSO also is designed to remove water and gas from the oil. The facilities have a total storage capacity of about 900,000 barrels.
"Since it will take a few weeks before the 900,000-barrel storage tank will be filled, the first shipment is likely in September," said Toshikazu Kobayashi, director of exploration and production at Mitsubishi Oil.
Kobayashi said details of crude marketing from Rang Dong will soon be available for potential customers.
The quality of crude found at the Rang Dong field in 1995 had an API gravity of 37-38 and a sulphur content of 0.05 %.
Mitsubishi Oil president Izumitani also noted that depreciation of its Vietnam oil exploration and development project will likely be completed in the next 2 years, based on the global average crude oil price at $ 15 per barrel.