Gazprom and Vietnam strengthening long-term partnership

The parties discussed the prospects for interaction between Gazprom and Petrovietnam Oil and Gas Group in joint projects for oil and gas resource development offshore Vietnam and in the Russian Federation.

The parties highly evaluated the work done by the companies in relation to launching commercial gas production from the fields of licensed blocks 05.2 and 05.3 offshore Vietnam.

In addition, the meeting emphasized the importance of the Agreement signed by Gazprom and Petrovietnam on establishing a joint venture for implementing the project on natural gas use as a vehicle fuel in the Republic of Vietnam.

The meeting addressed the agreements reached by Gazprom and Petrovietnam for speeding up the negotiating process surrounding liquefied natural gas supplies to Vietnam within the Vladivostok-LNG project and the intention to sign a Framework Agreement concerning LNG supplies before the end of 2013.

Summarizing the results of the negotiations, Alexey Miller and Nguyen Tan Dung confirmed their commitment to strengthen the mutually beneficial long-term partnership. The parties shared the opinion that the companies' interaction in Vietnam and Russia had a high development potential.

Gazprom and Petrovietnam are engaged in exploration, production and marketing of hydrocarbons in block No.112 of Vietnam's continental shelf through the Vietgazprom joint operating company. As a result of the geological exploration performed in 2007, the Bao Vang gas and condensate field was discovered in the block. In 2009 natural gas reserves were also discovered in the adjacent Bao Den area.

A long-term Oil and Gas Contract is currently in force between Gazprom and Petrovietnam for blocks No.129, 130, 131 and 132 on the continental shelf of the Republic of Vietnam. The document stipulates hydrocarbon exploration, development and production in these blocks. The Contract will be implemented on the PSA terms. Vietgazprom acts as the project operator.

Gazprom Group is represented in Vietgazprom by Gazprom International – Gazprom’s unified specialized company dealing with hydrocarbon exploration and production abroad.