TNK Vietnam, a subsidiary of TNK-BP Group, will begin drilling two subsea wells in the Lan Do field, offshore Vietnam, next month.

First gas from the $400m Lan Do project will come onstream in the fourth quarter of 2012.

The company expects Lan Do to produce two billion cubic metres of natural gas a year, reports Bloomberg.

In addition, TNK Vietnam will participate in the current licensing round for offshore blocks being auctioned by PetroVietnam.