The Gazprom headquarters hosted today a working meeting between Alexey Miller, Chairman of the Company's Management Committee and Phung Dinh Thuc, Chairman of the Board of Directors of Petrovietnam State Oil and Gas Corporation.

Special attention was paid to the companies' potential cooperation in the area of natural gas use as a motor fuel. The parties examined an opportunity of signing the Memorandum of Understanding in the mentioned area as soon as possible. The document is to define the key areas of cooperation in NGV fuel production and use in the Socialist Republic of Vietnam.

The meeting participants also discussed the progress with joint projects offshore Vietnam. It was noted that exploration activities in blocks No.112 and No.129–132 were successful.

In addition, Alexey Miller and Phung Dinh Thuc identified further actions for deepening the cooperation in liquefied natural gas (LNG) marketing. In this respect, a possible conclusion of a long-term LNG purchase and sale contract is addressed.

Background

Gazprom considers the NGV fuel market as a promising area of the Company's activities targeted at increasing the economic efficiency of Russian gas sales abroad.

Within the Joint Coordinating Committee between Gazprom and Petrovietnam State Oil and Gas Corporation the parties are exploring the possibilities for cooperation in the area of natural gas use as a motor fuel.

In the framework of the Vietgazprom joint operating company Gazprom and Petrovietnam are engaged in hydrocarbons exploration, production and marketing in block No.112 of Vietnam's continental shelf. 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.

A long-term Oil and Gas Contract is currently in force between Gazprom and Petrovietnam 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.

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 in oil and gas projects in Russia, Vietnam and in third countries within Gazpromviet being currently set up. The Nagumanovskoye oil, gas and condensate field located in the Orenburg Region as well as the Severo-Purovskoye gas and condensate field in the Yamal-Nenets Autonomous Area were defined as the major objects of the companies' cooperation in Russia.

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.

In July 2012 Gazprom Marketing and Trading Singapore and Petrovietnam Gas, a Vietnamese Joint Stock Corporation signed a Memorandum of Understanding on cooperation in the sphere of LNG supplies.