COMMERCIAL B.H.P. and C.R.A. look at South Vietnam oil

Press, Volume CXIV, Issue 33493, 26 March 1974, Page 14

COMMERCIAL B.H.P. and C.R.A. look at South Vietnam oil

, CV.Z.P A.-Reuter— Copyright) MELBOURNE, March 25. Two of Australia’s biggest companies — B.H.P. and Conzinc RioTinto of Australia. Ltd —are interested in oil and gas exploration off South Vietnam.

A spokesman for the two companies said they were studying information about 33 "off-shore blocks being offered for exploration by President Thieu’s Government.

The qualifications of Australian, United States, French, and Japanese companies wanting to bid for the blocks must be approved by the South Vietnam Government by March 29.

The C.R.A. spokesman said a three-man delegation from his company’s head office is in Saigon, to investigate the prospects.

He said the investigations were “low key and just routine.” “We are interested, but things are at a very early stage.” he added.

A Broken Hill Proprietary geologist, who was in Saigon two weeks ago, said: “The competition for these blocks will be very intense.” Both spokesmen denied their companies were interested in blocks near the Spratley islands, in the South China Sea.

The islands were the scene of a recent clash between South Vietnamese and Chinese forces. China and South Vietnam both claim ownership of the islands.

The discovery of oil is South Vietnam’s key longterm economic hope.

Government sources said the aim was to attract large foreign companies with the capability to exploit the oil potential to the full. It is the second time South Vietnam has offered oil exploration rights up for auction. Last year the rights went to Shell, Esso, Mobil and the Canadian Sunningdale firm.