The Gazprom Headquarters hosted today a working meeting between Alexey Miller, Chairman of the Company’s Management Committee and Pham Gia Khiem, Minister of Foreign Affairs of the Socialist Republic of Vietnam.

The meeting discussed the status and the prospects for the Russian-Vietnamese cooperation in the energy sector. The parties highly appreciated the results of the joint work between Gazprom and Petrovietnam within the previously signed arrangements and expressed their confidence in deeper development and expansion of further cooperation between the companies in hydrocarbon production and processing area in Vietnam, Russia and other countries.

Background:

At present, Vietgazprom, a Joint Operating Company of Gazprom and Petrovietnam Vietnam National Oil and Gas Group, is engaged in prospecting in Block 112 offshore of the Socialist Republic of Vietnam under the Contract dated September 11, 2000. The Contract contemplates searching for, exploring, producing and marketing hydrocarbons.

In August 2007, a commercial gas inflow was reported during the first exploratory well testing in Bao Wang area as part of the prospecting activities in Block 112 offshore Vietnam in the Gulf of Bac Bo performed by Vietgazprom. The discovered field also contains gas condensate.

On November 20, 2006, Gazprom and Petrovietnam entered into the Agreement of Cooperation. The Agreement stipulates cooperation between the companies in the following areas:

• exploration, production, transportation, utilization and marketing of natural gas, oil and other energy carriers;
• engineering, construction, operation and maintenance of oil and gas pipelines, storage facilities as well as distribution networks;
• inspection and monitoring of the technical condition and safety of gas and oil pipelines as well as other gas and petrochemical infrastructure facilities.
• utilization of oil and gas as a vehicle fuel, development and management of gas distribution and fueling station networks;
• processing of oil, gas and other hydrocarbons;
• supply of oil and gas processing products, as well as oil and gas industry equipment.

The Agreement also envisages interaction between the companies within promising projects in third countries, including in the area of oil and gas field exploration and development.

On May 23, 2008, Gazprom and Petrovietnam inked the Agreement for Further Cooperation. The Agreement provides for geological exploration and further development of four new blocks offshore Vietnam. The project will be operated by Vietgazprom Joint Operating Company.

The Agreement also contemplates setting up a joint venture, Gazpromviet, for operations in Russia and third countries. Gazprom will be represented in the joint venture by Zarubezhneftegaz.