Delek returns to gas and oil exploration in Vietnam
Delek and its partners will invest $ 4.6 mm in the concession. Delek Group subsidiary Delek Energy Systems is again
drilling for gas and oil in Vietnam, after a three-year hiatus.
Delek and its partners in the concession have prepared a drilling plan for 2005, at an investment of $ 4.6 mm.
Britain's Premier Oil will make most of the investment in the concession.
Delek owns 25 % of the concession. Samedan Oil of the US sold its 75 % stake to Premier Oil six months ago. The
partnership previously carried out a number of drillings without finding commercial quantities of gas or oil.
The concession covers 6,900 sq km in the South China Sea, in 100-meter deep water 400 km southeast of Vietnam.
The Vietnamese government has an option to buy 15 % of the concession rights from Texan company, Opeco. The
Vietnamese government also has 3.8 % in royalties rights.
Under an agreement with the Vietnamese government, Premier Oil will bear the full cost of the drilling. The
Vietnamese government will bear 25 % of additional drilling, if approved. If only one drilling is made during 2005,
Delek's cost could amount to only $ 60,000-200,000.
