Our Business

SOCO’s business is upstream oil and gas exploration and production. Our business involves the acquisition of and participation in exploration and production projects.

Operational activities include geological and geophysical surveys, design, construction and drilling wells, assessment of hydrocarbon reserves, extraction and transfer of produced oil and gas to processing facilities. SOCO’s revenues derive from our jointly operated producing assets; the TGT Field in Block 16-1 and the CNV Field in Block 9-2, both located in the shallow water Cuu Long Basin, offshore southern Vietnam and from portfolio transactions occurring from time to time.

At the start of 2017, we were participating partner in four oil licence interests in three countries: Vietnam, Congo (Brazzaville) and Angola. A further PSC for Blocks 125 & 126, offshore central Vietnam, between PetroVietnam, SOVICO Holdings and SOCO was formally signed in October 2017, awarding SOCO a 70% operated interest over the two blocks. During 2H 2017, we secured an exploitation permit (‘PEX’) over each of the Viodo, Lideka and Loubana prospect areas. These, together with the existing PEX over the Lidongo prospect area, together comprise the former Marine XI Block, the exploration phase of which expired at the end of March 2017. In Q4 2017, the Group signed agreements pursuant to which, subject to governmental approval, would increase its non-operating interest in the Cabinda North PSC from 17% to 22%.

Our business creates value for society through its investment in developing countries and the role that the wider industry sector plays in meeting the global energy demand. Our contribution to the economic development of our host countries creates value for society by stimulating local economies. We input technical, managerial and commercial expertise contributing to national upskilling, create jobs in local communities, provide training and technical assistance, enhance the capacity of host governments, pay relevant taxes and governmental fees, generate revenues from hydrocarbon production and create returns for our shareholders.

2017 outcomes

Our corporate strategic outlook in the short term is to shape the business and position the Company to deliver sustainable growth. Accordingly, we have focussed on ensuring we are well positioned to deliver international best practice operating standards in all our forward operating plans.

During 2017, our core operations were in Vietnam where the jointly operated TGT Field on Block 16-1 and CNV Field on Block 9-2 achieved stable levels of production. Two infill wells were drilled, both on time and on budget, on the TGT Field. No operational activities were conducted in Congo (Brazzaville) or Angola. Acquisition and potential merger opportunities were actively reviewed throughout 2017 with the impetus continuing in 2018.

During the year we rolled-out our recently updated SOCO HSES MS and have set-up a training program to raise awareness throughout all our assets. The system is live and further opportunities to improve the system have been identified and will be implemented in 2018.

The steps taken by the Board to ensure that it has adopted the appropriate corporate governance, including diversity, to facilitate effective, entrepreneurial and prudent management to deliver the long-term success of the Company pursuant to the UK Corporate Governance Code are described in the Corporate Governance Report in the 2018 Annual Report and Accounts on pages 56 to 63.

The SOCO HSES MS was implemented through all projects for which SOCO is the designated Operator. There were no reported breaches of the SOCO Code or the HSES policies during 2017.

 
 
 
 
 
 
 
 

SOCO is aware of attempts to impersonate the company on social media. SOCO does not use Twitter or have a Facebook page.