On March 18, the Headquarters of PetroVietnam Exploration & Production Corporation (PVEP, a part of Vietnam State Petroleum Group Petrovietnam) hosted a meeting between the PVEP CEO Do Van Khanh and other executives of the Corporation, and the Gazprom International delegation led by its Managing Director Valery Gulev.
During the meeting, the parties carried out a detailed discussion of the key aspects of their cooperation in the joint venture between PVEP and Gazprom International «Vietgazprom» on the contracted blocks №112 and №129-132. Special consideration was given to the current situation of the world market and low oil prices. The discussion centered on the surge of activities to speed the launch of the Bao Wang reservoir, which had originally been discovered in 2007.
The parties shared the opinion that the successful realization of the joint projects in the current market climate demands extra input from both sides.
While discussing ways for further cooperation, V. Gulev offered to consider the opportunities for collaboration between PVEP and Gazprom International in other countries where the parties have projects, besides those in Vietnam and Russia. According to V. Gulev, the cooperation between one of the leading oil and gas subsidiaries in the Southeast Asia and a Russian company, which operates in 20 countries globally, will open up new opportunities and possibilities for partnerships.
Dr. Do Van Khanh supported the offer of the head of Gazprom International and expressed confidence in its successful implementation in the near future.
On the same day, V. Gulev had a business meeting with the Chairman of the PVEP Board of Directors, Hoang Ngoc Dang. The executives discussed the current situation and the main ways for further cooperation within the joint projects.
In 2000, Gazprom and PetroVietnam signed a Contract on the exploration, output and realization of hydrocarbons on the block №112 of the continental shelf of Socialist Republic of Vietnam. In order to execute the agreement, the parties founded the joint operational venture Vietgazprom, where Gazprom is represented by its 100% subsidiary Gazprom International, Gazprom’s sole specialised company for prospecting, exploration, and development of hydrocarbon fields outside the Russian Federation.
In 2007, the Bao Wang gas field was discovered on the contract area; in 2009, the Bao Dan gas field was found.
1n 2008, the parties signed an Agreement on cooperation, which ensures the geological surveying and further development of the four new blocks on the shelf of Vietnam, as well as the creation of the joint venture Gazpromviet for activities in Russia and third countries.
In October 2008, Gazprom and PetroVietnam signed a long-term contract on blocks № 129, 130, 131, and 132 of the continental shelf of Vietnam as a Production sharing agreement (PSA), the operator of which is Vietgazprom. Within the framework of the contract, a great amount of geological survey is currently being carried out and the preparations for deep-water well drilling are now in place.
In 2009, Gazprom and PetroVietnam signed an Agreement on a strategic partnership. The parties came to an agreement to continue the joint activity on the Vietnam shelf within the framework of previously signed contracts, as well as to consider the opportunities for work on the new licensed blocks.
In 2012, Gazprom International, on behalf of Gazprom entered the project for gas exploration and development in the Mok Tinh and Hai Thach fields in the licensed blocks № 05-2 and № 05-3 on the shelf of Vietnam; and in September 2013, the industrial extraction on the Mok Tinh gas field started.
In October 2013, the basic principles Agreement of the joint venture activities on the use of natural gas as a motor fuel in Vietnam was signed. For its execution, the joint venture PVGAZPROM NGV was created.