TNK Vietnam, a subsidiary of TNK-BP Group, has completed the drilling of two development wells in the Lan Do offshore field, Vietnam.

Drilling operations on the subsea wells, located in Block 06.1, began on 14 January in depths of 185m, some 28km from the Lan Tay offshore platform.

The two vertical subsea wells will be tied back to the existing Lan Tay platform using a single 12in flow line in late May 2012.

TNK-BP executive vice president Upstream Alexander Dodds said completion of the first two development wells is a significant milestone for the company, as it is the first ever offshore drilling project for the TNK-BP Group.

"The project was delivered right on time, and we expect first gas from the new Lan Do field as early as in October 2012," said Dodds.

TNK-BP said it plans to flow gas from the Lan Do field in the fourth quarter with annual production expected at up to two billion cubic meters of gas.

The company said the production capacity will sustain Block 06.1’s current production of 4.7 billion cubic meters a year.

TNK-BP is jointly owned by BP and and AAR, a consortium of Alfa Group, Access Industries and Renova; it became operator of the block after acquiring a 35% stake from BP last year.