OREANDA-NEWS. February 1, 2012. In Vung Tau City (Vietnam) XL Meeting of “Vietsovpetro” Joint Venture Committee was held.

5 Committee members from the Russian Participant and 5 Committee members from the Vietnamese Participant as well as the Parties’ experts took part in the XXXVIII Committee Meeting. The Russian side was represented by the Head of Russian part of the Committee – JSC “Zarubezhneft” General Director N.G. Brunich, Committee members – Deputy Head of the Department of the Federal Agency for State Property Management N.M. Bogdanov, First Deputy General Director of JSC “Zarubezhneft” V.S. Gorshenev, First Deputy General Director of JV “Vietsovpetro” M.A. Sobolev.

Vietnamese part of the Committee was presented by the Head of the Vietnamese part of the Committee – General Director of "Petrovietnam" National Oil & Gas Group Do Van Hau and Committee members – Head of the Industry Department of the Ministry of Planning & Investments of SRV Nguyen Quang Dung, Head of the Business Finance Department of the Ministry of Finance of SRV Tran Huu Tien, Head of the Division of the General Department of Energy of the Ministry of Industry & Trade of SRV Tran Thanh Tung, General Director of JV “Vietsovpetro” Nguyen Huu Tuyen.

Honorable guests were present at the meeting from the Russian part: Ambassador Extraordinary & Plenipotentiary of the Russian Federation in SRV Kovtun A.G., the Consul General of the Russian Federation in Ho Chi Minh Borovik A.V., General Director of JC “RUSVIETPETRO” Ltd. Ambaev V.S., from the Vietnamese part: Chairman of the Management Board of "Petrovietnam" National Oil & Gas Group Phung Dinh Thuc, the member of the Management Board of "Petrovietnam" National Oil & Gas Group Vu Khanh Truong, Deputy Chairman of the People’s Committee of Baria-Vung Tau Province Le Thanh Dung, Deputy Head of the Department for Economy of the Secretariat of the Central Committee of the Communist Party of Vietnam Nguyen Quoc Minh. General Director of "Petrovietnam" National Oil & Gas Group Do Van Hau was elected the Chairman of the XL Meeting of the Committee.

The Committee noted that the expected oil production in the year 2011 in general for JV “Vietsovpetro” will be 6420,0 thousand tons, including:

- from Bach Ho field – 4 652,0 thousand tons

- from Rong field (including NR-DM field) – 1 768,0 tons.

8 880,8 thousand cubic meters of water (106,4% of the planned value) were injected into target formations, including “Bach Ho” field – 7 972,3 thousand cubic meters, to maintain formation pressure.

Oil withdrawal compensation with injected water for the Central basement dome of Bach Ho field, the main target, amounted to 98,7%, since the commencement of development – 87,9%.

Well production water-cut for the Central basement dome was 25,7%, for October month – 28,1%.

Oil prospecting & exploration operations within the Block 09-1 are being continued.

Actual volume of drilling was 23 154 meters, construction of three wells (1X Bach Gau and 33-Др N-W Rong – by subcontracting, 1X Bach Meo – using its own resources) was completed. Expected performance for the year 2011 is 28 825 meters.

Total oil reserves increase (geological/recoverable reserves) was 24,0/5,4 million tons against the annual plan of 16,1/4,7 million tons, including:

- for Bach Gao structure (geological/recoverable reserves) – 9,3/2,2 million tons against the annual plan of 6,0/1,7 million tons;

- for Bach Meo structure (geological/recoverable reserves) – 14,7/3,2 million tons against the annual plan of 6,0/1,7 million tons;

In the 3Q of 2011 the contract with “Murmanskaya” jack-up rig for 2X well drilling in Bach Gao field was extended.

Well drilling and work-over jobs are carried out by three own and four hired jack-up rigs, one mobile modular unit and three fixed offshore platforms.

Volume of production drilling was 54 094 meters, of which 31 178 meters were drilled by own resources. Construction of 14 wells was completed of which 7 wells were constructed by own resources.

Expected performance for the year 2011 shall be 64 594 meters, 19 wells will be constructed.

These are some results of JV “Vietsovpetro” activities.

The Committee has recognized the work of JV “Vietsovpetro” team as satisfactory.

The Committee has taken the following decisions: to approve oil production level for the year 2012 in the volume of 6 140 thousand tons, to provide gas supply to the shore from Block 09-1 in the volume of 551,0 million m3; to approve the exploration drilling program for the year 2012 in the volume of 16 850 meters and the plan of geological/recoverable reserves increase for the Block 09-1 in the volume of 27,7/8,3 million tons of equivalent fuel; to complete 7 exploration wells construction. To approve the production drilling program for the year 2012 in the volume of 85 920 meters, of which 46 190 meters to be performed by own resources, 39 730 meters by contractors. To complete 24 wells construction, including 12 wells – by its own resources, 12 wells by contractors.

Other plans of the JV regarding its production and financial activity have been also approved.

The Committee has noted that according to the decisions of ХХХVI and XXXIX meetings of the Committee of JV “Vietsovpetro” during the year 2011 the work on sphere of the JV’s activities expansion had been continued.

Thus, for the Block 04-1 offshore SRV seismic 3D data processing (in the volume of 1669 km2) and interpretation works were carried out. The drilling conditions of the first exploration well were studied and proposals on its location were prepared. For the Block 16-2 offshore SRV an approval for 1 year extension of exploration period was received and the exploration well 16-2-DN-2X (4525m depth) was drilled.

Upon work completion of the XL meeting of “Vietsovpetro” Joint Venture Committee, General Directors of JSC “Zarubezhneft” – N.G. Brunich and "Petrovietnam" National Oil & Gas Group – Do Van Hau, signed the Minutes of the Meeting.

Upon completion of the working procedure, Ambassador Extraordinary & Plenipotentiary of the Russian Federation in SRV Kovtun A.G. presented to the best Vietnamese workers with the Certificates of Honour of the Government of the Russian Federation.