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

The parties discussed bilateral cooperation in the oil and gas sector and brought into focus the main thrusts of its further development. Particularly, the meeting lauded the efforts taken by the Vietgazprom joint operating company, which had discovered the Bao Vang and Bao Den fields, and was processing and interpreting the data after seismic and geochemical studies of blocks No.129, 130, 131, 132 on the continental shelf of the Republic of Vietnam.

The negotiations highlighted a positive trend in the cooperation between the companies within the framework of the Gazpromviet joint venture to develop the Nagumanovskoye field in the Orenburg Region and the Severo-Purovskoye field in the Yamal-Nenets Autonomous Area.

The meeting addressed joint efforts in third countries as well.

Alexey Miller and Phung Dinh Thuc paid special attention to possible Russian LNGsupplies from Vladivostok to Vietnamese consumers and creation of a joint venture on NGV fuel.

Background

On September 11, 2000 Gazprom and Petrovietnam signed a contract that contemplated searching for, exploring, producing and marketing hydrocarbons in block No.112 of the Vietnamese 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. Natural gas reserves were also discovered in the adjacent Bao Den area in 2009.

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 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 and geochemical studies 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 being currently set up. The Nagumanovskoye oil, gas and condensate field located in the Orenburg Region was defined as the major object of cooperation between the companies in Russia. Also, Gazpromviet obtained a subsurface use license for the Severo-Purovskoye gas and condensate field located in the Yamal-Nenets Autonomous Area. 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.