Gazprom and PetroVietnam to launch new oil and gas projects and cooperate in power sector
May 16, 2016 - Alexey Miller, Chairman of the Gazprom Management Committee, and Nguyen Quoc Khanh, Chairman of the Board of Directors of Vietnam Oil and Gas Group (PetroVietnam), signed today in Moscow a number of documents to strengthen cooperation between the companies.
The signing ceremony was attended by Dmitry Medvedev, Prime Minister of the Russian Federation, and Nguyen Xuan Phuc, Prime Minister of the Socialist Republic of Vietnam (SRV).
The following documents were signed:
- the Memorandum of Understanding on the development of new oil and gas projects;
- the Memorandum of Understanding on power generation; and
- the Addendum to extend the Cooperation Agreement on personnel training.
According to the Memorandum of Understanding on the development of new oil and gas projects, the parties plan to examine further opportunities for mutually beneficial cooperation in the field of hydrocarbon prospecting, exploration and development. Among the opportunities being considered are joint activities within new projects at licensed blocks on the shelf of Vietnam and in third countries.
The Memorandum of Understanding on power generation reflects the intention of the signatories to explore the possibilities of joint projects for gas-based power generation within Vietnam. To achieve that goal, the parties plan to use gas from their joint projects offshore Vietnam and LNG from Gazprom Group's portfolio.
The Cooperation Agreement on personnel training was extended for five years under the Addendum.
“Together with PetroVietnam we successfully conduct hydrocarbon exploration and production, work on NGV projects, and implement staff training programs.
The documents signed today expand the scope of our collaboration. We plan to jointly deliver new oil and gas projects and cooperate in the power sector, thereby gradually enhancing our partnership,” said Alexey Miller.
Vietnam Oil and Gas Group, PetroVietnam, is focused on hydrocarbon exploration, production, processing, transportation and marketing.
Vietgazprom, the joint operating company established by Gazprom and PetroVietnam on a parity basis, conducts exploration activities in blocks 112 and 129–132 located on the continental shelf of Vietnam. Gazprom is represented in the joint venture by Gazprom International, a specialized company for the implementation of hydrocarbon prospecting, exploration and development projects outside Russia.
Since 2013, Gazprom International and PetroVietnam have been engaged in commercial gas and condensate production from the Moc Tinh and Hai Thach fields within licensed blocks 05–2 and 05–3 offshore Vietnam (with recoverable gas and condensate reserves amounting to 35.9 billion cubic meters and 15.2 million tons respectively).
In 2009, Gazprom and PetroVietnam entered into the Agreement on Strategic Partnership envisaging, inter alia, the companies' cooperation in oil and gas projects in Russia, Vietnam, and third countries.
In 2015, Gazprom and PetroVietnam signed the Agreement on the major terms and conditions of developing the Nagumanovskoye (Orenburg Region) and Severo-Purovskoye (Yamal-Nenets Autonomous Area) fields. Gazpromviet (Gazprom – 51 per cent, PetroVietnam – 49 per cent) holds development licenses for both fields.
In 2015, PVGAZPROM Natural Gas for Vehicles, a joint Russian-Vietnamese company focused on the use of natural gas as a vehicle fuel, was registered. The joint venture consists of Gazprom International (35.5 per cent), Gazprom Gazomotornoye Toplivo (35.5 per cent), and PETROVIETNAM GAS (29 per cent).
Since 2012, Gazprom and PetroVietnam have been implementing the five-year Cooperation Agreement on personnel training. Every year PetroVietnam's employees study in master's and doctoral degree programs at the Gubkin Russian State University of Oil and Gas. Gazprom and PetroVietnam also offer trainee exchange programs at the companies' production facilities on an annual basis.