On 20 November in Nha Trang (Socialist Republic of Vietnam), the seventh meeting of the Joint Coordination Committee (JCC) of Gazprom and the Vietnamese oil and gas group (VNG) Petrovietnam on the implementation of the companies' 2009 Strategic Partnership Agreement was held.
The meeting was led by the co-chairmen of the JCC: Deputy Chairman of Gazprom's Management Committee Vitaly Markelov, along with VNG Petrovietnam Vice-President Nguyen Vu Chong Shon.
Participating in the JCC on behalf of Gazprom International was Managing Director Valeriy Gulev, Deputy Director of the company's Moscow branch and Technical Director Valery Cholovsky, Vietgazprom General Director Sergei Tumanov, and other professionals.
During the meeting the sides discussed various aspects of their bilateral collaboration in detail. In particular, they expressed their satisfaction with the results of Vietgazprom's exploration work at blocks 112 and 129–132 in offshore Vietnam, and examined technical matters and prospective cooperation concerning gas production at the Moc Tinh and Hai Thас fields located within the 05-2 and 05-3 licence blocks on the Vietnamese shelf.
There was also a discussion on extending cooperation within the Gazpromviet joint venture in relation to the development of the Nagumanovskoye and Severo-Purovskoye deposits in the Russian Federation.
The JCC focused particular attention on the production and use of gas as a motor fuel within Vietnam. The sides agreed on the draft charter of a joint gas motor-fuel venture PVGAZPROM NGV, with the involvement of PV Gas (part of the Petrovietnam structure), Gazprom International and Gazprom Gazomotornoye Toplivo.
The meeting decided that when PVGAZPROM NGV was registered in the near future, it would prepare an updated draft feasibility study. This study is to be prepared using the results of research into the potential market for gas motor fuel in the countries of South-East Asia.
The Committee also instructed Petrovietnam and Gazprom International to examine ways of establishing a health, safety and environmental management system (HSE MS) at Vietgazprom, to meet the requirements of Vietnamese legislation and the terms of oil and gas contracts, as well as general international standards and regulations.
At the end of the meeting the JCC's plan for 2015 was approved and the companies' specialists were given their relevant instructions.
Created on a parity basis, the joint operating company Vietgazprom (with Gazprom represented by Gazprom International, the sole operator of the company's upstream projects outside the Russian Federation) is responsible for the prospecting, extraction and sale of hydrocarbons at block 112 in offshore Vietnam. The Bao Vang gas and condensate field was discovered in this block in 2007, and a gas accumulation of the same name was also found in the adjacent Bao Den area in 2009.
A long-term Oil-and-Gas Contract is also in effect between Gazprom and Petrovietnam for Blocks 129, 130, 131 and 132 of the continental shelf of the Socialist Republic of Vietnam. The Contract envisages the exploration, development and production of hydrocarbons at these blocks. It is being implemented on PSA terms with Vietgazprom as the operator.
On 15 December 2009, Gazprom and Petrovietnam signed a Strategic Partnership Agreement. In accordance with the document, the parties will continue their joint work on the continental shelf of Vietnam under the oil and gas contracts previously concluded and will also study future opportunities for cooperation in the free licensed blocks of Vietnam.
The agreement also provides for active cooperation between Gazprom and Petrovietnam in oil and gas projects in Russia, Vietnam and third countries. The Nagumanovskoye oil and gas-condensate deposit located in the Orenburg Region and the Severo-Purovskoye gas condensate field in the Yamal-Nenets Autonomous District are the focus of the companies' cooperation in Russia.
In April 2012, the Gazprom Group and Petrovietnam signed an Agreement for Gazprom to join the project for the joint development of licensed blocks 05-2 and 05-3, situated in the south-eastern part of the Vietnamese shelf, in the South-Konshon oil and gas basin some 300 km from the city of Vung Tau. Two fields were discovered within these blocks – Moc Tinh and Hai Thac. Gazprom International also represents Gazprom in this project.
In July 2012, Gazprom Marketing & Trading Singapore and the Vietnamese corporation Petrovietnam Gas signed a Memorandum of Mutual Understanding in relation to cooperation in liquefied natural gas shipments.
In May 2013, Gazprom and Petrovietnam signed a Memorandum of Understanding on cooperation in the production and use of gas as a motor fuel in the territory of Vietnam. In October of the same year they signed an agreement on the basic principles for establishing a joint venture between Petrovietnam and a consortium comprising Gazprom International and Gazprom Gazomotornoye Toplivo.