Rosneft and PetroVietnam Expand Cooperation

The document was signed in the presence of Russian Prime Minister Dmitry Medvedev and Prime Minister of the Socialist Republic of Vietnam Nguyen Xuan Phuc by Rosneft Chairman of the Management Board Igor Sechin and the Chairman of the Board of Directors of PetroVietnam Nguyen Quoc Khanh.

The agreement provides for the expansion of cooperation between the parties in Russia, Vietnam and third countries in the area of hydrocarbon exploration and production (including offshore), processing, commerce and logistics, as well as staff training. The parties agreed to consider potential options for joint projects and define the basic terms of cooperation as well as establish a working group for each of the areas of cooperation.

Commenting on the signing of the agreement, Igor Sechin said: "Successfully working with PetroVietnam in the exploration and production of hydrocarbons in Vietnamese offshore, Rosneft is interested in further expansion of its business in the country, including refining, petrochemicals, commerce and logistics. The new stage of cooperation will enable the Company to get a new channel of marketing hydrocarbons in the Asia-Pacific market and create additional synergies due to refining in the region."

Chairman of the Board of Directors of PetroVietnam Nguyen Quoc Khanh noted: “We completely support Rosneft’s plans in Vietnam and welcome further development of cooperation between two companies”.

Rosneft and PetroVietnam are currently involved in the project of gas and condensate production and exploration offshore Vietnam (Block 06.1) where Rosneft Vietnam B.V. (Rosneft subsidiary) is the project operator. The project is based on a Production Sharing Agreement (PSA). The PSA area comprises two gas condensate fields – Lan Tay and Lan Do. The fields are located 370 km off the coast in the Nam Con Son basin with a sea depth of up to 190 m. Gas Initial in place is about 66 bcm. Since the fields’ development start about 50 bcm of gas were produced.

Rosneft and PetroVietnam also have stakes in the Nam Con Son pipeline, which will transport gas and condensate from the Nam Con Son offshore basin blocks to an onshore power generation facility.