Today the Gazprom Headquarters hosted a working meeting of Alexey Miller, Chairman of the Company’s Management Committee and Phung Dinh Thuc, President and CEO of Petrovietnam State Oil and Gas Corporation.

The parties discussed the activities of Vietgazprom Joint Operating Company related to Vietnam’s continental shelf development. It was noted that the development of the areas offshore Vietnam by the joint venture was carried out in compliance with the approved work schedule.

In addition, Alexey Miller and Phung Dinh Thuc addressed the issues of joint projects execution in Russia and third countries within Gazpromviet, a joint venture being set up.

Background:

At present, Vietgazprom, a 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 Wang gas and condensate field was discovered in the Block. Current operations in Block 112 center on proceeding with geological exploration in Bao Wang 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 parties with the following shareholding structure: Gazprom – 51 per cent and Petrovietnam – 49 per cent. Gazprom will be represented in the joint venture through Gazprom zarubezhneftegaz.

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.