Gazprom and PetroVietnam discuss joint projects
Hanoi hosted a working meeting between Vitaly Markelov and Nguyen Quoc Khanh, Chairman of the Board of Directors of PetroVietnam (Vietnam Oil and Gas Group).
Another working meeting was held between Vitaly Markelov and Nguyen Vu Truong Son, President and CEO of PetroVietnam. The meeting addressed the implementation of the existing contracts and agreements on hydrocarbon exploration, production and sales, as well as participation in new joint projects to be executed in Vietnam, Russia, and third countries. The parties also discussed possible collaboration in the field of power generation.
Particular attention was given to the further joint implementation of the NGV project in Vietnam. The project aims at enhancing the transport system effectiveness in a number of towns, cities, and provinces of southern Vietnam, as well as at improving the environment in the most densely populated region of the country. The project entails, inter alia, the construction of an LNG plant and NGV stations.
As a result of the meeting, Gazprom and PetroVietnam decided to shortly draft a comprehensive plan of action (“roadmap”) on the wider use of natural gas as a vehicle fuel in order to achieve the main goals of NGV market development in Vietnam.
The state-owned PetroVietnam Group is focused on hydrocarbon exploration, production, processing, transportation and sales.
Vietgazprom, the joint operating company of Gazprom (50 per cent) and PetroVietnam (50 per cent), conducts exploration activities in blocks 112 and 129–132 located on the continental shelf of Vietnam. Since 2013, Gazprom and PetroVietnam have been engaged in commercial gas production at the Moc Tinh and Hai Thach fields within 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 2009, Gazprom and PetroVietnam entered into the Agreement on Strategic Partnership envisaging, inter alia, the companies' cooperation in oil and gas projects in Russia, Vietnam, and third countries.
In 2014, Gazprom and PetroVietnam signed the Framework Agreement on the terms and conditions for the joint development of the Nagumanovskoye oil, gas and condensate field and the Severo-Purovskoye gas and condensate field. Gazpromviet (Gazprom: 51 per cent, PetroVietnam: 49 per cent) holds development licenses for both fields.
In 2015, a joint Russian-Vietnamese company focused on natural gas as a vehicle fuel was registered. The joint venture consists of Gazprom International (35.5 per cent), Gazprom Gazomotornoye Toplivo (35.5 per cent), and PETROVIETNAM GAS (29 per cent). The company's goals include the construction and commissioning of natural gas liquefaction facilities, cryogenic and multi-fuel filling stations, individual fuel pumps for water transport; liquefied natural gas intake, storage and regasification systems; vehicle retrofitting and service depots as well as other NGV infrastructure facilities for servicing gas-fueled vehicles and machinery.