Today the Gazprom Headquarters has hosted a working meeting between Alexey Miller, Chairman of the Gazprom Management and Nguyen Tan Dung, Prime Minister of the Socialist Republic of Vietnam.

The parties discussed issues related to the hydrocarbon reserves development in Vietnam offshore. Particularly the meeting greatly appreciated the results of prospecting activities in block 112 performed by Vietgazprom, the Joint Operating Company of Gazprom and Vietnam Oil and Gas Corporation Petrovietnam.

The participants examined a number of prospecting directions for joint activities including hydrocarbon production and processing projects in Vietnam and third countries.

“I am sure that Russian-Vietnam partnership in the oil and gas sector will make a special contribution to further trade and economic development of our countries,” said Nguyen Tan Dung.

“The Republic of Vietnam is a promising hydrocarbon production region for Gazprom, where we have received the first successful prospecting results thanks to joint efforts of Gazprom and our Vietnam colleagues,” said Alexey Miller.

Reference:

Prospecting activities in block 112 offshore the Socialist Republic of Vietnam are performed by Vietgazprom, the Joint Operating Company of Gazprom and Vietnam Oil and Gas Corporation Petrovietnam with due regard to the Agreement as of September 11, 2000. The Agreement stipulates hydrocarbon prospecting, exploration, production and marketing.

In 2005 the parties decided to expand the Agreement application for prospecting activities in neighboring block 113.

On November 20, 2006 Gazprom and Petrovietnam signed an Agreement of cooperation stipulating cooperation between the companies in the following areas:

·         Natural gas, oil and other energy exploration, production, transportation,
          utilization and marketing;

·         Oil & gas pipeline, storage facility as well as distribution pipeline network engineering,
          construction, operation and maintenance;

·         Oil & gas pipeline as well as other gas and petrochemical infrastructure inspection
          and monitoring;

·         Oil and gas powered vehicles, gas distribution and filling network development
          and management;

·         Oil, gas and other hydrocarbon processing;

·         Oil & gas derivative as well as oil & gas industry equipment supplies.

Pursuant to the Agreement, the parties also agreed to promote interaction within promising projects in third countries, including when exploring and developing gas and oil fields.

In August 2007 a commercial gas inflow was reported during the first exploratory well testing in Bao Wang as part of the prospecting activities in block 112 offshore Vietnam in the Gulf of Bac Bo.

According to the survey data, the gas inflow was rated at up to 400 thousand cu m/d, with gas condensate found in the well stream.

The scheduled gasdynamic study is currently underway on the inflow characteristics. An operational hydrocarbon appraisal and proposals on further directions of in-place exploration activities are due in the near future.