OREANDA-NEWS. May 18, 2011. The Gazprom headquarters hosted today a working meeting between Alexey Miller, Chairman of the Company's Management Committee and Bui Dinh Dinh, Ambassador Extraordinary and Plenipotentiary of the Socialist Republic of Vietnam to Russia.

 The meeting participants shared the opinion that relationship between Russia and Vietnam in the energy sector had great potential for development and joint projects implementation in Vietnam made a considerable contribution to improving the regional welfare. The parties appreciated the efforts by the Vietgazprom joint operating company (JOC) during the Vietnamese continental shelf development. The parties also considered the relevant issues of the Gazpromviet joint venture operation and the prospects for the Vietnamese party involvement in implementing oil and gas projects within Russia.
Background

 On September 11, 2000 Gazprom and Petrovietnam signed a contract that contemplated searching for, exploring, producing and marketing hydrocarbons in block 112 offshore Vietnam. To implement this contract Gazprom and Petrovietnam established a joint operating company (JOC), Vietgazprom. As a result of the geological exploration performed in 2007, the Bao Vang gas and condensate field was discovered in the block.

 In May 2008 Gazprom and Petrovietnam inked the Agreement on Further Cooperation. The Agreement stipulates geological exploration and further development of four new blocks offshore Vietnam as well as incorporation of the Gazpromviet joint venture to run its business in Russia and third countries with the following shareholding structure: Gazprom – 51 per cent and Petrovietnam – 49 per cent.

 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 phase 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.

 On December 15, 2009 Gazprom and Petrovietnam entered into the Agreement on Strategic Partnership. In line with the document the parties will continue their 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 provides for a pro-active approach to oil and gas projects execution by Gazprom and Petrovietnam in Russia, Vietnam and third countries within the newly created company Gazpromviet.

 The Nagumanovskoye oil, gas and condensate field located in the Orenburg Oblast was defined as the key target for the companies' cooperation in Russia. The joint venture may be involved in operations at other licensed blocks in the long run.