Unocal Announces Gas Find off Vietnam

Unocal Corp. said it and three partners may spend up to $1.5 billion over 25 years to develop natural gas discoveries off Vietnam.

Unocal, state-owned PetroVietnam, Mitsui & Co. of Japan and PTT Exploration & Production of Thailand have drilled 10 successful wells in three fields with as much as 2.5 trillion cubic feet of reserves that are either proven or likely to exist, the Los Angeles-based company said.

Development of the fields is dependent on construction of a 235-mile pipeline in southern Vietnam and the construction of several power plants, Unocal said. That, in turn, will depend on the expansion of Vietnam’s economy.

Vietnam expects power usage to rise 15% a year.

Unocal Vietnam President John Parmigiano said the company’s gas could also be exported to Thailand, Malaysia or Cambodia.

Unocal has a 42.4% stake in two blocks in its contracted exploration area, and a 43.4% stake in a third block.