Gazprom and PetroVietnam to develop Moc Tinh and Hai Thach fields to full capacity in 2016

RELEASE

The Gazprom headquarters hosted today a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Nguyen Xuan Son, Chairman of the PetroVietnam National Oil and Gas Group Board of Directors.

Gazprom and PetroVietnam to develop Moc Tinh and Hai Thach fields to full capacity in 2016
Gazprom and PetroVietnam to develop Moc Tinh and Hai Thach fields to full capacity in 2016

At working meeting between Alexey Miller and Nguyen Xuan Son

The parties addressed the bilateral cooperation in the gas sector, particularly the joint development of hydrocarbon resources in Vietnam and Russia. The participants praised the joint gas production from Moc Tinh and Hai Thach located on the Vietnamese shelf and noted that the fields would reach their full capacity in 2016.

Nguyen Xuan Son, Chairman of PetroVietnam’s Board of Directors at meeting with Alexey Miller
Nguyen Xuan Son, Chairman of PetroVietnam’s Board of Directors at meeting with Alexey Miller

Nguyen Xuan Son (right)

The focus was also placed on the issues of the NGV market development in Vietnam and on the prospects for the interaction in electric power generation.

In addition, the meeting addressed the progress with talks on buying a stake in the Dung Quat oil refinery and its subsequent upgrade, as well as the arrangement of oil supplies to the said refinery.

Gazprom and PetroVietnam to develop Moc Tinh and Hai Thach fields to full capacity in 2016
Gazprom and PetroVietnam to develop Moc Tinh and Hai Thach fields to full capacity in 2016

Geological exploration offshore Vietnam

Background

Gazprom and PetroVietnam National Oil and Gas Group entered into the Agreement on Strategic Partnership in 2009. In line with the document, the parties will continue jointly operating in Vietnam's offshore blocks and studying further prospects for cooperation in vacant licensed blocks of the Republic. The Agreement also contemplates a pro-active interaction between Gazprom and PetroVietnam in oil and gas projects across Russia, Vietnam and third countries within Gazpromviet.

Vietgazprom, joint operating company of Gazprom and PetroVietnam, is engaged in exploration activities in blocks No. 112, 129, 130, 131, 132 located in the continental shelf of Vietnam. In October 2013 Gazprom and PetroVietnam launched commercial gas production from the Moc Tinh and Hai Thach fields of licensed blocks 05.2 and 05.3 offshore Vietnam, with recoverable gas and condensate reserves amounting to 35.9 billion cubic meters and 15.2 million tons respectively.

In October 2013 Gazprom and PetroVietnam signed the Agreement on the basic principles of the joint venture activities under a project for natural gas use as a vehicle fuel in the Republic of Vietnam. The document stipulates promoting the cooperation between the companies in converting public transport in Ho Chi Minh City to natural gas. Gazprom Gazomotornoye Toplivo and Gazprom International represent Gazprom in the project.

Dung Quat, Vietnam's only oil refinery, has an output of 6.5 million tons per year and consumes some 85 and per cent of domestically produced oil and 15 per cent of oil exported from the Middle East.

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