Vietnamese President Truong Tan Sang visits Gazprom headquarters
The Gazprom headquarters hosted today a working meeting between Truong Tan Sang, President of the Socialist Republic of Vietnam and Vitaly Markelov, Deputy Chairman of the Company's Management Committee.
The parties discussed a wide spectrum of issues surrounding the Russian-Vietnamese cooperation in the energy sector. In particular, they lauded the projects of Gazprom Group and PetroVietnam being executed within the Vietgazprom joint operating company on the Vietnamese continental shelf.
The meeting paid special attention to the prospects for possible Russian liquefied natural gas (LNG) supplies to Vietnam. In the course of the meeting, the signing of a Memorandum of Understanding took place. The Memorandum covers the LNG supply cooperation between Gazprom Marketing & Trading and PetroVietnam Gas, a Vietnamese Joint Stock Corporation.
Based on the meeting results, Truong Tan Sang and Vitaly Markelov highlighted that the cooperation in the oil and gas sector was mutually beneficial and served as a solid foundation for the friendly relations between Russia and Vietnam.
Besides, Vietnamese President visited Gazprom's Central Operations and Dispatch Department and got acquainted with the Unified Gas Supply System of Russia.
On September 11, 2000 Gazprom and PetroVietnam signed a contract that contemplated searching for, exploring, producing and marketing hydrocarbons in block No.112 of Vietnam's continental shelf. To implement this contract Gazprom and PetroVietnam established a joint operating company, Vietgazprom. As a result of the geological exploration performed in 2007, the Bao Vang gas and condensate field was discovered in the block. In 2009 natural gas reserves were also discovered in the adjacent Bao Den area.
In May 2008 Gazprom and PetroVietnam inked the Agreement for Further Cooperation. The Agreement stipulates geological exploration and further development of four new blocks offshore Vietnam as well as incorporation of the Gazpromviet joint venture to run its business in Russia and third countries with the following shareholding structure: Gazprom – 51 per cent and PetroVietnam – 49 per cent.
Gazprom Group is represented in Vietgazprom by Gazprom EP International, Gazprom's unified specialized company focused on hydrocarbons exploration and production abroad.
In October 2008 Gazprom and PetroVietnam signed a 30-year Oil and Gas Contract for blocks No.129, 130, 131, 132 on the continental shelf of the Republic of Vietnam. The document stipulates hydrocarbons exploration, development and production in these blocks. The Contract will be implemented on the PSA terms. Vietgazprom will act as the project operator. At the geological exploration phase, the project financing is carried out by Gazprom. As part of the Contract, 2D seismic exploration and geochemical research operations were performed. The obtained data is under processing and interpretation.
On December 15, 2009 Gazprom and PetroVietnam entered into the Agreement on Strategic Partnership. In line with the document, the parties will continue their joint operations in the Vietnamese offshore blocks as contemplated by previously signed oil and gas contracts. They will also study future prospects for cooperation between the companies in vacant Vietnamese licensed blocks.
The Agreement also contemplates active partnership between Gazprom and PetroVietnam on oil and gas projects in Russia, Vietnam and in third countries within Gazpromviet. The Nagumanovskoye oil, gas and condensate field located in the Orenburg Region was defined as the major object of the companies' cooperation in Russia. The joint venture may be involved in operations at other licensed blocks in the long run.
In April 2012 Gazprom and PetroVietnam signed the Agreement on Gazprom involvement in joint development projects for licensed blocks 05.2 and 05.3 offshore Vietnam.
Gazprom Marketing & Trading Singapore was established in 2009 to deal primarily with LNG trading. The company successfully operates in China, India, Japan, Republic of Korea, Taiwan, Thailand and other countries.