Gazprom and Vietnam sign contract for four new offshore blocks of Republic of Vietnam
October 27, 2008 - Today Alexey Miller, Chairman of the Gazprom Management Committee and Tran Ngoc Canh, President of Petrovietnam Oil and Gas Group (PVN) signed in the presence of Dmitry Medvedev, the Russian Federation President and Nguyen Minh Triet, President of the Socialist Republic of Vietnam, a 30-year Oil and Gas Contract for Blocks 129, 130, 131, 132 of the Vietnam continental shelf.
The Contract stipulates exploration, development and production of hydrocarbons in these blocks offshore Vietnam.
The Contract will be implemented on the PSA terms. Vietgazprom, the Joint Operating Company of Gazprom and Petrovietnam will act as the project operator.
At the stage of geological exploration the project financing will be effectuated by Gazprom.
The parties have also signed the Primary Provisions for setting up a joint venture, Gazpromviet, to secure the companies' cooperation in Russia and third countries. The company's shareholding structure is as follows: Gazprom - 51 per cent, PVN Petrovietnam - 49 per cent. In this project Gazprom will be represented through Gazprom zarubezhneftegaz.
The Nagumanovskoye field located in the Orenburg Oblast has been defined as the major object of the companies' cooperation in Russia.
At present, Vietgazprom, the Joint Operating Company of Gazprom and Petrovietnam is carrying out geological exploration in Block 112 offshore the Socialist Republic of Vietnam pursuant to the Contract signed on September 11, 2000. The Contract contemplates searching for, exploring, producing and marketing hydrocarbons.
In August 2007 a commercial gas inflow was reported during the first exploratory well testing in Bao Wang as part of the prospecting activities in Block 112 offshore Vietnam in the Gulf of Bac Bo performed by Vietgazprom. Gas condensate was also found in the new field.
On November 20, 2006 Gazprom and Petrovietnam signed the Agreement of Cooperation stipulating cooperation between the companies in the following areas:
- Natural gas, oil and other energy exploration, production, transportation, utilization and marketing;
- Oil & gas pipeline, storage facility, as well as distribution pipeline network engineering, construction, operation and maintenance;
- Oil & gas pipeline as well as other gas and petrochemical infrastructure inspection and monitoring;
- Oil and gas powered vehicles, gas distribution and filling network development and management;
- Oil, gas and other hydrocarbon processing;
- Oil & gas derivative as well as oil & gas industry equipment supplies.
The Agreement also stipulates cooperation between the companies in promising projects in third countries, including when exploring and developing gas and oil fields.
On May 23, 2008 Gazprom and Petrovietnam inked the Agreement for Further Cooperation. The Agreement provides for geological exploration and further development of four new blocks offshore Vietnam.
The Agreement also contemplates setting up a joint venture, Gazpromviet, for operations in Russia and third countries.