The fourth meeting of the Joint Coordination Committee (JCC) has taken place between Gazprom and PetroVietnam Oil and Gas Group (PVN) regarding the implementation of a Strategic Partnership Agreement between the companies.
The meeting was led by the co-chairman of the JCC – Gazprom's Deputy Chairman of the Board Vitaly Markelov and vice-president of PetroVietnam, Nguyen Vu Truong Son.
The participants at the meeting gave an interim report on activity results and approved a plan of action up to the end of 2012. The parties gave a positive assessment of the progress of geological exploration work conducted by the Joint Operations Company (JOC) Vietgazprom in Blocks 112 and 129-132 offshore from Vietnam and examined a wide range of issues, including those connected with scientific and technical collaboration, the implementation of agreements for staff training and possible procurement of Russian liquefied natural gas in Vietnam. At the end of the meeting, Mr. Markelov and Nguyen Vu Truong Son also noted the prospects for developing cooperation under projects with the companies Gazprom International and Gazprom Neft.
In addition, members of the Gazprom delegation and representatives from PetroVietnam took part in celebratory events marking the 10-year anniversary of the founding of the Joint Operational Company Vietgazprom.
In 2000, Gazprom and Petrovietnam signed a contract for the exploration, prospecting, production and sale of hydrocarbons in Block 112 of the continental shelf of Vietnam. A Joint Operating Company, Vietgazprom, was created between Gazprom and PetroVietnam to implement this contract. After carrying out geological exploration in 2007 in the block, the Bao Wang gas condensate field was discovered, and in 2009 reserves of natural gas were also discovered in the neighbouring field of Bao Den.
In 2008, the parties signed an Agreement regarding future cooperation, which provides for geological exploration work and further development of 4 new blocks offshore from the Socialist Republic of Vietnam, and also the creation of a joint venture, Gazpromviet, for working in Russia and third countries, with a 51/49 stake in favour of PetroVietnam.
The Gazprom Group is represented in Vietgazprom by its single specialist business for the exploration and production of hydrocarbons abroad, Gazprom International.
In October 2008, Gazprom and PetroVietnam signed an Oil and Gas Contract for Blocks 129, 130, 131 and 132 of the continental shelf of the Republic of Vietnam for a period of 30 years. The document provides for exploration, development and production of hydrocarbons in these blocks. The contract will be implemented under production sharing conditions. Vietgazprom is the operator for the contract. At the exploration stage, Gazprom financed the project. 2-D seismic survey work and geochemical studies have been carried out within the scope of this contract, and the processing and interpretation of the resulting data is ongoing.
Gazprom and PetroVietnam signed a Strategic Partnership Agreement in 2009. The parties have agreed to continue their joint work on Vietnam's continental shelf within the scope of previously concluded contracts, and will also examine further potential for work in unused licensed blocks. The agreement also provides for cooperation within Russia, Vietnam and third countries under the company Gazpromviet. The main objective for collaboration in Russia was identified to be the Nagumanovsky oil and gas condensate field in the Orenburg Region. There is a possibility in the future to involve the joint venture in work on other licensed areas. Gazprom's interests in Gazpromviet are also represented by Gazprom International.
In April 2012, Gazprom and PetroVietnam signed an Agreement for Gazprom’s entry into the project for the joint development of licensed Blocks 05.2 and 05.