The Joint Operating Company (JOC)Vietgazprom has started drilling two prospecting boreholes in Area 112 of the Vietnamese continental shelf.
Potential hydrocarbon horizons in these structures are located in the depth interval 600-1800 metres.
In August 2007, during geological survey works by Vietgazprom in Area 112 of the Vietnamese continental shelf in the Bak Bo bay, drilling of a prospecting borehole in the Bao Vang area obtained an industrial flow of natural gas.
During 2008, a detailed 3D seismic survey was conducted in the area, the geological structure was defined more accurately, and prospecting borehole drilling points were located.
The project operator, the JOC Vietgazprom, formed between OAO Gazprom and VNG Petrovietnam (with Gazprom’s interests being represented by ZAO Gazprom zarubezhneftegaz), is also conducting geophysical surveys on the remaining section of Area 112. In 2007-8, a 2D seismic survey was also conducted.
The oil & gas contract for the searching and prospecting for, and the extraction and sale of, hydrocarbons from Area 112 of the SRV continental shelf was signed in Moscow on 11 September 2000. JOC Vietgazprom was founded by OAO Gazprom and VNG Petrovietnam on a parity basis in June 2002.
On 27 October 2008, in the presence of RF President Dmitry Medvedev and Vietnamese President Nguyen Minh Triet, Alexey Miller, Chairman of Gazprom, and Chan Ngoc Kanh, President of the Vietnamese Oil and Gas Group (VNG) Petrovietnam, signed an oil and gas agreement for Areas 129-132 of the Vietnamese continental shelf, for a 30-year period. The appointed operator for the project is SOC Vietgazprom.
The investment certificate (licence) for realising the Oil and Gas Contract for Areas 129, 130, 131 and 132 of the Vietnamese continental shelf was awarded to OAO Gazprom on 6 February 2009.
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;
• projecting, 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.
The agreement also provided for the parties to create joint companies for work in Russia and third-party countries. In this agreement, Gazprom’s interests would also be represented by Gazprom zarubezhneftegaz.
Work is in progress on prospecting boreholes in the Bao Den structure from the “Energy Searcher” drilling ship, as is drilling in the Coastal section from the self jack-up drilling rig PV Drilling 1.
Drilling is expected to last 14 months, with plans for constructing three prospecting boreholes in the Bao Den, Coastal and Bao Trang structures and three exploratory wells in the Bao Vang structure.