Over 6 billion cubic meters of hydrocarbons produced from Vietnam’s Moc Tinh and Hai Thach fields since 2013

RELEASE

A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Nguyen Vu Truong Son, CEO and Member of the Board of Directors of Vietnam Oil and Gas Group (PetroVietnam), took place in Moscow today.

The meeting addressed the ongoing and future cooperation between the companies. Among other things, the participants discussed the joint hydrocarbon production efforts in Vietnam. It was noted that the cumulative output of the Moc Tinh and Hai Thach fields had totaled some 6.6 billion cubic meters since 2003 when Gazprom Group joined the project. In 2016, the parties achieved their yearly goals for hydrocarbon production (2 billion cubic meters) ahead of schedule. It was also stressed at the meeting that Gazprom International and PetroVietnam had completed the five-year program for drilling operations in December 2016, with a total of 16 development wells drilled at Vietnam's fields in compliance with the development plan.

Particular attention was paid to the progress of geological exploration at blocks Nos. 112 and 129–132 located on the shelf of Vietnam, as well as to the implementation of the development projects for the Nagumanovskoye oil, gas and condensate field and the Severo-Purovskoye gas and condensate field in the framework of Gazpromviet's activities.

The parties also addressed the prospects of their joint projects in the gas-fired power generation and NGV sectors.

Background

Gazprom's main partner in Vietnam is PetroVietnam Group focused on hydrocarbon exploration, production, processing, transportation and marketing.

Vietgazprom, a joint operating company established by Gazprom and PetroVietnam on a parity basis, is engaged in exploration in licensed blocks Nos. 112 and 129–132 located on the continental shelf of Vietnam. The development of block No. 112 resulted in the discovery of the Bao Vang gas field in 2007 and the Bao Den field in 2009.

The Moc Tinh and Hai Thach fields are located within licensed blocks Nos. 05–2 and 05–3 on the shelf of Vietnam. The project operator is the Bien Dong petroleum operating company. Gazprom is represented in the joint venture by Gazprom International, a specialized company for the implementation of oil and gas projects outside Russia.

In 2009, Gazprom and PetroVietnam signed the Agreement on Strategic Partnership providing for, inter alia, joint oil and gas projects in Russia, Vietnam, and third countries.

In 2015, Gazprom and PetroVietnam signed the Agreement on the major terms and conditions of developing the Nagumanovskoye (Orenburg Region) and Severo-Purovskoye (Yamal-Nenets Autonomous Area) fields. Gazpromviet (Gazprom – 51 per cent, PetroVietnam – 49 per cent) holds the development licenses for both fields.

In 2015, PVGAZPROM Natural Gas for Vehicles, a joint Russian-Vietnamese company focused on the use of 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).

In 2016, Gazprom and PetroVietnam signed the Memorandum of Understanding on the development of new oil and gas projects, the Memorandum of Understanding on power generation, and the Addendum to extend the Cooperation Agreement on personnel training.

 

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