On 26 June 2015, in Ho Chi Minh City, the Management Committee conducted a regular meeting within the framework of production sharing agreements for blocks No 05-2 and No 05-3 offshore Vietnam. Gazprom International’s delegation was led by the company’s Managing Director, Valeriy Gulev; the Vietnamese side was represented by Vuong Minh Quang, the Head of Oil and Gas Contracts Department for the Vietnam Oil and Gas Group (PVN) Petrovietnam.
The attendees listened to a report by the project operator – the company Bien Dong POC – on the course of the implementation of the production programme, as well as on plans for works through the end of the current year. In particular, the members of the committee noted the work done by the operator regarding negotiations with contractors and suppliers for reducing contract rates, thanks to which it was possible to optimise budget spending. Information was shared regarding the progress of the drilling programme, as well as the production in the first half of 2015.
In accordance with plans for the current year, it is expected that the construction and commissioning of three new wells in the Hai Thach field will be completed, and that the construction of a fourth well will get under way. Plans are to extract 1.7 billion cubic metres of gas by the end of the year.
Blocks No 05-2 and 05-3 are located in the south-western part of the South China Sea. They have a total area of approximately 850 square kilometres. Two gas fields have been discovered in the territory covered by these blocks, Moc Tinh (05-3) and Hai Thach (05-2 and 05-3). Total reserves in Moc Tinh and Hai Thach are estimated at more than 55.5 billion cubic metres of gas. Production sharing agreements (PSAs) for these blocks were signed in 1992.
The agreement on involvement in joint project for blocks No 05-2 and 05-3 was signed on 5 April 2012 according to which the Gazprom group received a 49 per cent stake in the PSA under the conditions of which the project is being carried out. Gazprom’s interests in this project are represented by Gazprom International, the concern’s sole specialised company for the exploration and development of oil and gas deposits outside the Russian Federation.
Two years prior to this, in April 2010, the State Expert Commission of Vietnam approved a plan for the joint development of the Hai Thach and Moc Tinh fields. Commercial production of hydrocarbons was initiated there in September 2013.