Santos has a 50% operated equity interest in Block 123 in the Phu Khanh Basin, offshore Vietnam, and drilled its first exploration well in 2011, which was a non-commercial gas discovery. Santos and its partners completed a 564 square kilometre 3D seismic survey in June 2012 to evaluate the remaining prospects in Block 123, with a two exploration well commitment.
In October 2014, Santos was awarded a 40% interest in the Block 124 PSC in the Phu Khanh Basin. The Block covers an area of 6,006 square kilometres, and is located immediately to the south of Block 123. Eni is the operator of Block 124 and holds a 60% equity interest. The licence has a total contract term of 30 years with an initial exploration phase 1 commitment of four years with a work program of 2,200-kilometre 2D seismic, 500 square kilometres 3D seismic and one exploration well.