Gazprom Neft increases cooperation with Vietnam

The documents were signed in the presence of Russian President Vladimir Putin and the General Secretary of the Communist Party of Vietnam, Nguyen Phu Trong.

Alexander Dyukov, Chairman of Gazprom Neft’s Management Board, and Nguyen Xuan Son, Chairman of the Board of Directors of PetroVietnam, signed an agreement to start exclusive talks on possible cooperation in the exploration and development of the Dolginskoye field on the Pechora Sea shelf. Before the end of May 2015 the two parties are expected to sign an operating agreement and outline terms for the creation of a special company for the project, in which Gazprom Neft will be a majority stakeholder. PetroVietnam will be given access to all relevant information on the Dolginskoye field, and Gazprom Neft will refrain from entering into any discussions with other third parties on possible collaboration on this project over a period of six months.

Gazprom Neft and Binh Son Refining and Petrochemical, which owns and manages the Vietnamese Dung Quat oil refinery, also signed an agreement on the long-term maintenance of oil refineries. The contract provides for delivery of ESPO oil to Dung Quat from the Russian port of Kozmino. The oil price is calculated according to an agreed formula which is adjusted in line with market conditions.

The Dolginskoye oil field is located in the centre of the Pechora Sea, 120 kilometres south of the Novaya Zemlya archipelago and 110 kilometres north of the mainland coast. The field, discovered in 1999, lies under seawater extending to some 35–55 metres in depth. 2D seismic surveys extending to more than 11,000 linear kilometres have been undertaken at the field, as well as 3D seismic surveys covering an area of 1,600 kilometres. Four exploration wells have been drilled — three in the north and one in the south of the Dolginskoye field.

In November 2013 Gazprom Neft and Vietnam Oil and Gas Group (PetroVietnam) signed a framework agreement setting out the terms of Gazprom Neft’s proposed acquisition of a stake in the Dung Quat oil refinery and the refinery’s planned modernisation programme. Under the agreement, Gazprom Neft will acquire a 49% share in Binh Son Refining and Petrochemical, which controls and manages the refinery. The two parties are currently in negotiations over the price of the stake.