Vietnam, Laos sign oil exploration deal

Vietnam, Laos sign oil exploration deal

Vietnam, Laos sign oil exploration deal

Updated 19 December 2011, 11:08 AEDT

Vietnam says it's reached an agreement with Laos to search for oil and gas in two southern Lao provinces.

The official Vietnam News Agency says state-owned PetroVietnam will lead the joint search in a 14-thousand square kilometre area of Champasak and Salavan provinces.

The accord was signed in the Lao capital, Vientiane, on Tuesday, in a ceremony witnessed by Vietnam's Deputy Prime Minister Nguyen Sinh Hung and his Lao counterpart, Somsavad Lengsavat.

Correspondents say American and British energy companies searched for oil and gas in Laos in the 1990s without reporting any substantial discoveries, and the country now has to import its petroleum products.

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