A commercial gas inflow has been reported during the first exploratory well testing in Bao Wang as part of the prospecting activities in block 112 offshore the Socialist Republic of Vietnam in the Gulf of Bac Bo performed by Vietgazprom, the Joint Operating Company of Gazprom and Vietnam Oil and Gas Corporation Petrovietnam.

According to the survey data, the gas inflow was rated at up to 400 thousand cu m/d, with gas condensate found in the well stream.

The data point to the discovery of a natural gas field in Bao Wang.

The scheduled gasdynamic study is currently underway on the inflow characteristics. An operational hydrocarbon appraisal and proposals on further directions of in-place exploration activities are due in the near future.

Reference:

The development strategy of Gazprom as a global energy company is targeted at building the entire gas chain from hydrocarbon production to marketing in new markets and based on production capacities located outside Russia.

As part of this strategy Gazprom is developing hydrocarbon reserves offshore Venezuela, Vietnam, India and the Caspian Sea, and is considering the possibility of participating in oil and gas projects in Algeria, Bolivia, Egypt, Libya and Pakistan.

Gazprom’s participation in international projects embracing hydrocarbon exploration, production, transportation and marketing offers the Company great business development and diversification opportunities.

On September 11, 2000 Gazprom and Petrovietnam entered into the Petroleum Contract for Block 112 offshore the Republic of Vietnam. The Contract contemplates searching for, exploring, producing and marketing hydrocarbons.

On November 20, 2006 Gazprom and Petrovietnam signed an Agreement of cooperation stipulating cooperation between the companies in the following areas:

• Natural gas, oil and other energy exploration, production, transportation, utilization and marketing;
• Oil & gas pipeline, storage facility as well as distribution pipeline network engineering, construction, operation and maintenance;
• Oil & gas pipeline as well as other gas and petrochemical infrastructure inspection and monitoring;
• Oil and gas powered vehicles, gas distribution and filling network development and management;
• Oil, gas and other hydrocarbon processing;
• Oil & gas derivative as well as oil & gas industry equipment supplies.

Pursuant to the Agreement, the parties also agreed to promote interaction within promising projects in third countries, including when exploring and developing gas and oil fields.