On February 6, in the Ministry of Industry and Investment of the Socialist Republic of Vietnam in Hanoi, OAO Gazprom was granted an investment certificate (licence) to realise an oil and gas contract for areas 129, 130, 131 and 132 of the Vietnamese continental shelf.
The oil and gas contract was signed in Moscow on 27 October 2008 by OAO Gazprom Chairman Alexey Miller and Vietnam Oil and Gas Group (VNG) Petrovietnam President Tran Ngoc Canh in the presence of both countries’ Presidents. The contract is concluded for 30 years with a possible 5-year extension.
The document provides for the surveying, processing and extraction of hydrocarbons on the said Vietnamese shelf areas. The contract will be realised under conditions of production sharing. The contract operator will be Vietgazprom, the joint operations company of Gazprom and Petrovietnam. At the licence-granting ceremony, ZAO Gazprom zarubezhneftegaz represented the Russian side, through Director-General Valery Gulev. “We are delighted with the high level of work with Gazprom, and the issue of this certificate is a new step in the development of our relations”, Tran Ngoc Kanh said at the ceremony.
Areas 129-132 are located on the Southern Vietnamese shelf, in the little-studied NNE section of the South Konshon oil-and-gas-bearing basin. At present, the geological studies are at the initial (regional) stage. The areas measure a total of 28,400 sq km.
By order of Gazprom zarubezhneftegaz, a technical and economic basis has been prepared for conducting the geological surveys in the areas, examined and approved by the Russian and Vietnamese sides.
The structure of works during fulfilment of the minimum GEW programme includes complex geophysical and geochemical research and drilling of two initial prospecting boreholes. The main area of the works is the 2D seismic survey carried out over 20,000 l/km per year and planned to last for three years.
Following completion of the minimum GEW programme and a version of the single geological and geophysical macromodel of the sedimentary mantle of the areas, the areas of promise were studied in greater depth and new deposits may be opened.
JOC Vietgazprom was founded in 2002 to realise the oil and gas contract for area 112 of the Vietnamese continental shelf. Vietgazprom, in accordance with the Contract, is currently conducting geological surveys in Area 112 to search and prospect for hydrocarbons. In August 2007, during geological surveys by Vietgazprom in Area 112 in the Bac Bo area, a test of the exploratory borehole in the Bao Vang area produced an industrial flow of natural gas. gas condensate was also discovered in the open deposit.
On 20 November 2006, OAO Gazprom and Petrovietnam signed a joint work agreement. This agreement provided for joint work between the companies in the following areas:
• prospecting, processing, transportation, use and sale of natural gas, oil and other energy sources;
• prospecting, construction, operation and servicing of oil pipelines and gas pipelines, oil and gas storage point, and pipeline distribution networks;
• diagnosis and control of the technical state and safety of gas and oil pipelines and of other parts of the gas and oil-chemical infrastructure;
• use of oil and gas as motor fuels, development and management of gas distribution systems and petrol stations network;
• processing of oil, gas and other types of raw hydrocarbons;
• supply of oil and gas refining products and oil and gas industry equipment.
The document also provided for interaction between the companies in promising projects in third-party countries, including surveying and development of oil and gas deposits.
On 23 May 2008, a continued joint work agreement was signed between Gazprom and Petrovietnam. The agreement provided for geological survey works and further mastering of new areas on the Vietnamese shelf.