Gazprom and Petrovietnam Discuss Future Cooperation

By MarEx 2014-11-19 18:10:00

The Gazprom headquarters hosted a working meeting between Alexey Miller, chairman of the Gazprom management committee and Nguyen Xuan Son, chairman of the PetroVietnam Oil and Gas Group (PVN) board of directors.

The parties addressed the future cooperation in the oil and gas sector. In particular, they touched upon the joint actions offshore Vietnam as well as within gas production projects in Russia. It was pointed out that the jointly developed Moc Tinh and Hai Thach fields located on the Vietnamese shelf would reach their full capacity by 2016 and would produce nearly two billion cubic meters of gas per year.

The meeting participants also discussed the prospects for cooperation in LNG supply from Gazprom's portfolio to Vietnam as well as boosting the partnership in the NGV sector in the Republic.

Special attention was given to the cooperation in the oil refining and supply businesses. In particular, the parties pointed out the positive dynamics of the talks on Gazprom's possible entry into the project for upgrading the Dung Quat oil refinery in Vietnam.

Background

Gazprom and PetroVietnam Oil and Gas Group entered into the Agreement on Strategic Partnership in 2009. In line with the document, the parties will continue jointly operating in Vietnam's offshore blocks and studying further prospects for cooperation in vacant licensed blocks of the Republic. The agreement also contemplates a pro-active interaction between Gazprom and PetroVietnam in oil and gas projects across Russia, Vietnam and third countries within Gazpromviet.

Vietgazprom, joint operating company of Gazprom and PetroVietnam, is engaged in exploration activities in blocks No. 112, 129, 130, 131, 132 located in the continental shelf of Vietnam. In October 2013 Gazprom and PetroVietnam launched commercial gas production from the Moc Tinh and Hai Thach fields of licensed blocks 05.2 and 05.3 offshore Vietnam.

In October 2013 Gazprom and PetroVietnam signed the agreement on the basic principles of the joint venture activities under a project for natural gas use as a vehicle fuel in the Republic of Vietnam. The document stipulates promoting the cooperation between the companies in converting public transport in Ho Chi Minh City to natural gas. Dung Quat, Vietnam's only oil refinery, has an output of 6.5 million tons per year.