Gazprom and Petrovietnam discuss prospects for increased collaboration in the oil and gas sector

The sides discussed ways of developing bilateral collaboration in the oil and gas sector. In particular, this concerned joint operations in Vietnam's offshore fields, as well as partnership in gas production projects within Russia. It was noted that the forecasted gas yield at the country's offshore Moc Tinh and Hai Thac fields, a joint operation with Russia, would reach around 2 billion cubic metres by 2016.

Other matters discussed included the prospects for partnership in the supply of LNG from the Gazprom Group portfolio to Vietnam, and ways of developing partnership relations in the country's gas motor fuel sector.

Attention was also given to the potential for collaboration in the supply and refining of oil. Particular mention was given to the positive progression of talks concerning Gazprom's inclusion in the project to modernise the Zung Kuat oil refinery in Vietnam.

In 2009, Gazprom and Petrovietnam (PVN) signed a Strategic Partnership Agreement. The document foresees continuing joint operations in offshore Vietnam, as well as examining ways of developing future collaboration in the republic's available licence blocks. The agreement also provides for active cooperation between Gazprom and Petrovietnam in oil and gas projects in Russia, Vietnam and third countries as part of the Gazpromviet joint venture.

Vietgazprom, a joint operating company established by Gazprom and Petrovietnam, is conducting exploration work at blocks 112, 129, 130, 131 and 132 on Vietnam's continental shelf. In October 2013, Gazprom and Petrovietnam began commercial production of gas at the Moc Tinh and Hai Thac fields located within licence blocks 05-2 and 05-3 in offshore Vietnam. The operator of Gazprom's upstream projects in the territory of the Socialist Republic of Vietnam is Gazprom International, the sole specialised operator of Gazprom's hydrocarbon exploration, prospecting and development projects outside the Russian Federation.

In October 2013, Gazprom and Petrovietnam signed an agreement on the basic principles for a joint venture to implement a project on the use of natural gas as a motor fuel inside Vietnam. The document provides for the development of cooperation between the companies in converting public transport in Ho Chi Minh City to gas motor fuel.

Zung Kuat is the only oil refinery in Vietnam. It has a capacity of 6.5 million tonnes per year.