Gazprom and PetroVietnam addressing prospects for entry into Vietnamese petroleum products market
The Gazprom headquarters hosted today a working meeting between Vitaly Markelov, Deputy Chairman of the Gazprom Management Committee and Do Van Hau, President and CEO of PetroVietnam National Oil and Gas Group.
The meeting participants addressed the main areas of the cooperation in the energy sector. In particular, they endorsed the joint development projects offshore Vietnam and the growth of the NGV market in the Republic. In addition, the discussion was focused on the possibilities of supplying Russian LNG to Vietnam as well as the prospects for broadening the cooperation between Gazprom and PetroVietnam in Russia under the Gazpromviet joint venture.
Special attention was also given to the interaction in the oil refining sector. For instance, the parties looked into the prospects for joint operation and development of Dung Quat – Vietnam's only oil refinery. It was pointed out that increasing the capacity and improving the efficiency of the refinery would considerably boost the Vietnamese oil refining industry and give Gazprom access to one of the booming markets of petroleum products.
A joint venture of Gazprom (51 per cent stake) and PetroVietnam (49 per cent), Gazpromviet is focused on implementing oil and gas projects in Russia.
In 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. Gazprom and PetroVietnam are also engaged in exploration activities in blocks No. 112, 129, 130, 131, 132 located in the continental shelf of Vietnam.
In March 2013 Gazprom Marketing & Trading Singapore and PetroVietnam Gas signed Heads of Agreement for LNG supply to the Thi Vai terminal in southern Vietnam.
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 wider cooperation between the companies in converting Ho Chi Minh City public transport to natural gas.