by Quintella Koh|
Vietnam’s General Petroleum Exploration Company (PVEP) disclosed in the weekend that it has inked an agreement for a $300 million five-year syndicated loan from 17 foreign banks for its oil exploration and production projects.
The loan is part of PVEP’s $1.9 billion upstream expenditure for 2013; an amount that the company has committed to invest in developing its oil and gas projects. PVEP added in the disclosure that it aims to put seven new oil fields into operation this year, targets to produce 3.53 million tonnes of oil and looks to raise Vietnam’s proven crude reserves by 12.5 million tonnes.
The seven leading banks among the consortium are: ANZ, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Mizuho Corporate Bank, Overseas Chinese Banking Corp, Standard Chartered Bank and United Overseas Bank.
Vietnam’s goal to increase its oil and gas exploration activities this year is however, likely to be fraught with international tensions. State-backed PetroVietnam acknowledged in a statement on Dec. 27, 2012 that amid contesting claims from China, the Philippines and Vietnam for the Spratly Islands and the surrounding hydrocarbon-rich resource waters, drilling costs have increases and operations in the region have been made more complicated.