Today in Moscow Alexey Miller, Chairman of the Gazprom Management Committee and Phung Dinh Thuc, President and CEO of Petrovietnam State Oil and Gas Corporation signed in the presence of Vladimir Putin, Prime Minister of the Russian Federation and Nguyen Tan Dung, Prime Minister of the Socialist Republic of Vietnam an Agreement on Strategic Partnership.

Pursuant to the document, the parties will continue joint activities in the blocks of Vietnam’s continental shelf as part of the previously signed Oil and Gas Contracts and explore the possible ways of cooperation with the Socialist Republic of Vietnam in free licensed blocks.

The Agreement also contemplates intensive cooperation between Gazprom and Petrovietnam in oil and gas projects in Russia, Vietnam and third countries to be implemented by Gazpromviet, a joint venture being set up. In particular, the parties will consider the possible engagement in the Nagumanovskoye oil, gas and condensate field development, as well as in exploration and development of subsurface resources in the Republic of Sakha, Eastern Siberia and the Far East.

Gazprom and Petrovietnam have also agreed to develop sci-tech cooperation.

The parties will set up a Joint Coordinating Committee and a Joint Working Group to ensure successful execution of the accords reached.

Alexey Miller and Phung Dinh Thuc signed an Addendum to the Oil and Gas Contract on block 112 offshore Vietnam. The Addendum makes the terms and conditions of the Contract compliant with the decisions previously taken by the Vietnamese Government on extending the scope of the Contract to cover adjacent blocks 111 and 113 and on executing two oil and gas contracts (block 112 and blocks 129–132) by a single operator, the Vietgazprom Joint Operating Company.

In addition, an Agreement was signed on setting up the Gazpromviet joint venture.

Background:

At present, the Vietgazprom Joint Operating Company of Gazprom and Petrovietnam is engaged in geological exploration activities on the continental shelf of the Socialist Republic of Vietnam.

On September 11, 2000 Gazprom and Petrovietnam signed a contract that contemplated searching for, exploring, producing and marketing hydrocarbons in block 112 offshore Vietnam. As a result of the geological exploration work performed in 2007, the Bao Vang gas and condensate field was discovered in the block. Current operations in block 112 center on proceeding with geological exploration in Bao Vang and prospecting work in the Coastal, Bao Den and Bao Trang structures.

In November 2006 Gazprom and Petrovietnam entered into the Agreement of Cooperation promoting, inter alia, interaction between the companies in hydrocarbons exploration, production, transportation, utilization and marketing, as well as construction and operation of oil and gas pipelines, and petroleum processing facilities.

In May 2008 Gazprom and Petrovietnam inked the Agreement for Further Cooperation. The Agreement provides for geological exploration and further development of four new blocks offshore Vietnam, as well as for 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.

In October 2008 Gazprom and Petrovietnam signed a 30-year Oil and Gas Contract for blocks 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 stage 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.

The Nagumanovskoye oil, gas and condensate field located in the Orenburg Oblast was defined as the major object of the companies’ cooperation in Russia.