Alexey Miller, Chairman of the Management Committee, and Nguyen Xuan Son, Chairman of the Board of Directors of the Vietnam Oil and Gas Group Petrovietnam held a meeting today at Gazprom headquarters.

The meeting’s participants examined fundamental issues regarding bilateral partnership in the sphere of hydrocarbon resources development. They discussed cooperation on blocks 129-132 of Vietnam’s continental shelf. The interpretation of the geological and geophysical data for these blocks has been completed, and geotechnical and hydrological investigations have been carried out at the wells’ future location. Commencement on the drilling of a wildcat well on block 129 is planned for the second half of 2015. As noted in Gazprom’s press release, it will be the first deep-water well on Vietnam’s continental shelf. The depth of the sea at the drilling site exceeds 1,600 meters.

During the negotiations, special attention was also given to the preparation of the Agreement regarding the main terms of realization for the project on the development of Nagumanovskoye (Orenburg region) and Severo-Purovskoye (Yamalo-Nenets Autonomous Okrug) fields.

In addition, the participants discussed Gazprom’s intentions to acquire a share in Vietnam’s Dung Quat Refinery and participate in its modernization. It was noted that with the signing of the Basic Provisions of the agreement on the purchase of the share in the Refinery just mentioned, Gazprom obtained exclusive rights for negotiations on this contract.

NOTE

The joint operating company of Petrovietnam and Gazprom Vietgazprom is conducting exploration on blocks 112, 129, 130, 131, and 132 on Vietnam’s continental shelf. In 2013 Gazprom and Petrovietnam initiated industrial gas extraction from the Mok Tinh and Hai Thach reservoirs, which lie within the licensed blocks 05-2 and 05-3 on the shelf of Vietnam (extracted gas reserves – 35.9 billion cubic meters, gas condensate – 15.2 million tons). Gazprom is represented in the projects by its subsidiary Gazprom International, a unified specialized company purposed for the implementation of foreign upstream projects.

In 2014 Gazprom and Petrovietnam signed a framework agreement on the conditions for the implementation of the project for the development of the Nagumanovskoye and Severo-Purovskoye fields.

The proved geological gas reserves of the Nagumanovskoye reservoir total 5.8 billion cubic meters while the extracted reserves of condensate and oil are 1,683,000 tons and 960,000 tons respectively. The proved geological gas reserves of the Severo-Purovskoye reservoir total 45.5 billion cubic meters while the extracted reserves of condensate are 6,826,000 tons. Gazpromviet, LLC holds the license on the development of the reservoirs (Gazprom’s share is 51% and Petrovietnam’s is 49%).

Dung Quat is the only oil refinery in Vietnam. It has a capacity of 6.5 million tons per year.

In late 2014, Gazprom Neft and the Binh Son Refining and Petrochemical Co. signed an agreement on the long-term provision of the refinery with ESPO oil blend.

In April 2015, Gazprom Neft and Petrovietnam signed a document stating the Basic Provisions of the agreement on the purchase of the share in the refinery by Gazprom Neft.

Photo: OAO Gazprom