OREANDA-NEWS. March 14, 2008. The Gazprom Headquarters hosted a working meeting between Alexey Miller, Chairman of the Company’s Management Committee and Tran Ngoc Canh, President of Petrovietnam (Vietnam Oil and Gas Corporation).

The parties discussed the progress with the Agreement of Cooperation between Gazprom and Petrovietnam in the oil and gas sector and agreed on specific steps to be taken with a view to intensifying the work in the promising directions.

In particular, the meeting touched upon Gazprom’s possible participation in oil field development projects as well as joint activities in third countries.

Reference:

On November 20, 2006, Gazprom and Petrovietnam entered into the Agreement of Cooperation. The Agreement stipulates cooperation between the companies in the following areas:
Exploration, production, transportation, utilization and marketing of natural gas, oil and other energy carriers;
Engineering, construction, operation and maintenance of oil and gas pipelines, storage facilities as well as distribution networks;
Inspection and monitoring of the technical condition and safety of gas and oil pipelines as well as other gas and petrochemical facilities;
Utilization of oil and gas as a vehicle fuel, development and management of gas distribution and fueling station networks;
Processing of oil, gas and other hydrocarbons;
Supplies of oil and gas derivatives as well as oil and gas industry equipment.

The Agreement also envisages interaction between the companies within promising projects in third countries, including in the area of oil and gas field exploration and development.

Prospecting works in Block 112 offshore the Socialist Republic of Vietnam are performed by Vietgazprom, the Joint Operating Company of Gazprom and Petrovietnam (Vietnam Oil and Gas Corporation) pursuant to the Contract signed on September 11, 2000. The Contract contemplates searching for, exploring, producing and marketing hydrocarbons.

In 2005 the decision was taken to extend the application of the contract to involve the adjacent Block 113.

In August 2007 a commercial gas inflow was reported during the first exploratory well testing in Bao Wang as part of the prospecting activities in Block 112 offshore Vietnam in the Gulf of Bac Bo performed by Vietgazprom, the Joint Operating Company of Gazprom and Petrovietnam (Vietnam Oil and Gas Corporation).

According to the survey data, the gas inflow was rated at up to 400 thousand cu m, with gas condensate found in the well stream.

The scheduled gas dynamic study is currently underway on the inflow characteristics. An operational appraisal of hydrocarbon reserves and proposals on further directions of in-place exploration activities are due in the near future.