OREANDA-NEWS. On 13 February 2008 was announced, that the 34th Committee meeting of the Russian-Vietnamese Joint Venture Vietsovpetro was held in Vung Tau (SRV).

The Russian Party of the Committee was represented by:
N.G. Brunich -  Head of the Russian Party of the Committee, General Director of Zarubezhneft JSC;
Y.M. Medvedev -  Deputy Head of the Federal Agency for Federal Property Management;
V.Y. Salamatov -  Head of the Department of State Industrial Policy of the Ministry of Industry and Energy of the Russian Federation;
V.S. Gorshenev -  First Deputy General Director of Zarubezhneft JSC;
M.A. Sobolev - First Deputy General Director of JV Vietsovpetro.
 
The Vietnamese Party of the Committee was represented by:
Tran Ngoc Canh -  Head of the Vietnamese Party of the Committee, General Director of Oil and Gas Group Petrovietnam;
Nguyen Quang Dung -  Head of the Department of the Ministry of Planning and Investment of the SRV;
Ngo Van Sang - Head of the Department of Oil and Gas of the Government Office of the SRV;
Tran Huu Tien -  Deputy Director of the Department of the Ministry of Finance of the SRV;
Tran Le Dong -  General Director of JV Vietsovpetro.

The following guests of honor took part in the Committee meeting:

The Russian Party:
V.V. Serafimov -  Ambassador Extraordinary and Plenipotentiary of the Russian Federation to the SRV
N.D. Ubushiev -  Consul-General of the Russian Federation in Ho Chi Minh City
B.I. Davydenko -  Deputy General Director of All-Russian Scientific and Research Geological Oil Institute (VNIGNI)

The Vietnamese Party:
Dinh La Thang -  Chairman of Petrovietnam's Management Board of Directors
Do Van Dao -  Member of Petrovietnam's Management Board of Directors

General Director of Petrovietnam Tran Ngoc Canh, Head of the Vietnamese Party of the Committee, was unanimously elected Chairman of the 34th Committee meeting.

After considering the results of operational and commercial activities of JV Vietsovpetro in 2007, the Committee marked:

In 2007 JV Vietsovpetro produced 8,703 million tons of oil, up 1,2 % against the targeted figure. In order to preserve bed pressure, 15,832.4 million cu m of water were injected into the producing formation (an increase of 1,6% against the target).

Works on experimental water injection into the Lower Miocene deposits of the oilfield Rong began. The target of exploitation drilling was exceeded: 39108 m were drilled (up 186,4% against the target).

The 17Rong well, drilled in the south of the Central area of the Rong oilfield, flowed at a rate of 147 cu m of oil per day on a 19 mm choke (Miocene deposits). The well is temporary suspended. At the moment the reserves are being estimated.

In December of 2007 the exploratory well 28Rong was drilled in the centre of the Central area of Rong. The purpose of the drilling operations is to find deposits in the basement, to get its commercial evaluation and to explore oil deposits in the Oligocene and Miocene formations. The well flowed at a rate of 173 cu m of oil per day on a 12,7 mm choke (Lower Miocene deposits).

The possibilities to expand area of operations of JV Vietsovpetro are being studied. The contract for participation of JV Vietsovpetro in the project of development of Block 16-2 was signed. Geology and geophysics data were analyzed; preparations to conclude contracts for exploration in the license blocks of Tunis are under way.

The Committee declared the activities of JV Vietsovpetro in 2007 satisfactory.

At the 34th Committee meeting of JV Vietsovpetro, plan targets of production and financial activities of the JV for the year of 2008 were approved, priority areas for geological exploration were specified, and a plan of capital construction of offshore and onshore facilities for 2008-2009 was approved. Work program on safety measures and environmental protection at the production facilities of the JV was also approved.

The Committee made decisions on a number of personnel and legal issues aimed at improvement of the JV's organizational structure and increase of financial incentives and social protection of its employees. For example, for the purpose of material encouragement of the JV's employees in order to secure high-skilled workers and attract new experienced specialists, the Committee decided to raise wages of the JV's employees by 30 percent from 01.01.2008.

The continuation of cooperation within the frame of JV Vietsovpetro beyond the year of 2010 was one of the most important items of the Committee meeting Agenda. After considering the progress report of the joint working group of experts on implementation of recommendations of the Joint Declaration on further cooperation in geological prospecting and oil and gas production signed by the President of the Russian Federation and the President of the SRV on 20.11.2006, the Committee decided to entrust the Parties with the task to finalize joint proposals on possibilities, specific conditions, forms, schedule and other aspects of reorganization of JV Vietsovpetro for submission to the Governments of the two countries.

Furthermore, during the Committee meeting the Heads of the Russian and Vietnamese Parties of the Committee - General Director of Zarubezhneft JSC N.G. Brunich and General Director of Petrovietnam Tran Ngoc Canh - signed Alteration №1 to the Joint Venture's Charter. The Alteration secures the JV's right, with the agreement of the Parties, to implement additional projects on oil and gas exploration and production in the SRV, the Russian Federation and third countries in accordance with the laws of the SRV, the Russian Federation and third countries.

The Committee meeting was held in a friendly businesslike atmosphere.