Led by Alexey Miller, Chairman of the Management Committee, a Gazprom delegation today paid a visit to the Socialist Republic of Vietnam. Within the frame of the visit Alexey Miller met Nguyen Minh Triet, President of the Republic of Vietnam, Nguyen Tan Dung, the country’s Prime Minister, and Truong Tan Sang, a permanent member of the Presidium of the Central Committee, Communist Party of Vietnam. The parties discussed the development prospects for Gazprom cooperation with Vietnamese companies in the oil and gas sector.

During the visit Alexey Miller met Tran Ngoc Canh, President & CEO of Petrovietnam Vietnam National Oil and Gas Group, and Dinh La Thang, Chairman of the company’s Board of Directors.

The meeting participants discussed the progress in implementing the existing projects of Gazprom in the Socialist Republic of Vietnam and agreed on specific steps to be taken with a view to intensify work in promising directions.

In particular, special attention was paid to the prospects for cooperation in recovering Vietnamese offshore hydrocarbon reserves, to Gazprom’s possible involvement in elaborating a general layout for the Vietnamese gas industry development and in the projects in third countries, as well as to cooperation in personnel training.

A solemn ceremony of signing the Agreement for Further Cooperation between Gazprom and Petrovietnam took place during the meeting. The Agreement provides for geological exploration and further development of four new blocks in offshore Vietnam. Vietgazprom Joint Operating Company will be the project operator.

The Agreement also provides for setting up a Gazpromviet joint venture to ensure the companies’ participation in the oil and gas projects implemented in Russia and other countries. Zarubezhneftegaz will represent Gazprom in the joint venture.

Reference:

Prospecting activities in Block 112 offshore of the Socialist Republic of Vietnam are being carried out by Vietgazprom Joint Operating Company set up by Gazprom and Petrovietnam pursuant to the Contract signed on 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 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.
• Supplies 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.