Hanoi(the Socialist Republic of Vietnam) hosted today the sixth meeting of the Joint Coordinating Committee (JCC) between Gazprom and Petrovietnam State Oil and Gas Corporation aimed at implementing the Strategic Partnership Agreement signed by the companies.

The meeting was moderated by the JCC Co-Chairmen – Vitaly Markelov, Deputy Chairman of the Gazprom Management Committee and Nguyen Vu Truong Son, Vice President of Petrovietnam State Oil and Gas Corporation.

The parties discussed various aspects of the bilateral cooperation in the energy sector. Particularly, they expressed satisfaction with the results of exploration activities carried out by Vietgazprom joint operating company in blocks No.112 and No.129–132 offshore Vietnam.

Special attention was paid to the prospects for interaction in gas production from the Moc Tinh and Hai Thach fields located within licensed blocks 05.2 and 05.3 offshore Vietnam.

The meeting also addressed the cooperation deepening within the Gazpromviet joint venture to develop the Nagumanovskoye and Severo-Purovskoye fields in the Russian Federation.

The companies highlighted a significant potential of joint projects with Gazprom Gazomotornoye Toplivo and Gazprom International in the Socialist Republic of Vietnam.

In particular, the parties agreed that the feasibility study prepared for the project stipulating natural gas use as a vehicle fuel in Vietnam had confirmed its economic efficiency and viability. Based on the feasibility study results, the decision was made to sign an Agreement in this area.

The meeting resulted in adopting the 2014 action plan for the JCC and the Joint Working Group of Gazprom and Petrovietnam as well as assigning the corresponding tasks to the companies' specialists.

Background

In the framework of the Vietgazprom joint operating company Gazprom and Petrovietnam are engaged in exploration, production and marketing of hydrocarbons 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 hydrocarbon exploration, development and production in these blocks. The Contract will be implemented on the PSA terms. Vietgazprom acts 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 the 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 pro-active interaction between Gazprom and Petrovietnam in oil and gas projects across Russia, Vietnam and third countries within Gazpromviet. 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. Blocks 05.3 and 05.2 are located in the southeastern part of the Vietnamese shelf, in the Yuzhno-Konshonsky oil- and gas-bearing basin, 300 kilometers away from Vung Tau. Two gas and condensate fields – Moc Tinh and Hai Thach – were discovered within the blocks. The recoverable reserves of these fields amount to 35.9 billion cubic meters of gas and 15.2 million tons of gas condensate.

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.

On May 14, 2013 Gazprom and Petrovietnam signed a Memorandum of Understanding to cooperate in natural gas production and use as a vehicle fuel in the Socialist Republic of Vietnam.

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.

The Joint Coordinating Committee between Gazprom and Petrovietnam State Oil and Gas Corporation is engaged in activities aimed at expanding the interaction between the companies and exploring the possibilities for cooperation in the area of natural gas use as a vehicle fuel.

A special-purpose company – Gazprom Gazomotornoye Toplivo – was set up with a view to improve the efficiency of Gazprom's strategy for the NGV market development. The company consolidates Gazprom's relevant core assets.

Gazprom International, a wholly-owned subsidiary of Gazprom, is a unified specialized company within Gazprom Group dealing with prospecting, exploration and development of hydrocarbon fields abroad. Today, the company runs its business in 20 countries of Europe, Asia, Africa and Latin America.