The Gazprom Headquarters hosted today a working meeting between Alexander Ananenkov, Deputy Chairman of the Company’s Management Committee and Phung Dinh Thuc, Director General of Vietnam Oil and Gas Corporation.

The parties approved the work being done by Vietgazprom Joint Operating Company on Vietnam’s continental shelf. It was particularly noted that the execution of the oil and gas reserves development contracts was progressing in strict compliance with the preset schedules.

Emphasis was also placed on a potential increase in the number of joint oil and gas projects within Gazpromviet joint venture being created at the moment. The parties agreed on setting up a joint working group to search for and substantiate these projects.

Background:

At present, Vietgazprom, a Joint Operating Company of Gazprom and Petrovietnam, Vietnam National Oil and Gas Group, is engaged in geological exploration on the continental shelf of the Socialist Republic of Vietnam.

On September 11, 2000 Gazprom and Petrovietnam signed the Contract to prospect for, explore, produce and market hydrocarbons at Block 112 of Vietnam’s continental shelf. Geological exploration resulted in the discovery of the Bao Vang gas and condensate field in 2007. The current activities at Block 112 include geological exploration follow-up at the Bao Vang field, as well as prospecting and assessment at the Coastal, Bao Den and Bao Trang structures.

In November 2006 Gazprom and Petrovietnam signed the Agreement of Cooperation stipulating, inter alia, cooperation between the companies in hydrocarbon exploration, production, transportation and marketing, oil and gas processing, as well as oil and gas pipelines construction and operation.

In May 2008 Gazprom and Petrovietnam inked the Agreement for Further Cooperation providing for geological exploration and further development of four new blocks offshore Vietnam, as well as setting up Gazpromviet joint venture for operations in Russia and third countries, with Gazprom holding a 51 per cent stake and Petrovietnam National Oil and Gas Group – 49 per cent. Gazprom will be represented in the joint venture by Gazprom zarubezhneftegaz.

In October 2008 Gazprom and Petrovietnam signed the 30-year Oil and Gas Contract for Blocks 129, 130, 131, 132 located in the continental shelf of the Republic of Vietnam. The document envisages exploration, development and production of hydrocarbons at these blocks. The Contract will be implemented on the PSA terms. Vietgazprom Joint Operating Company will act as the project operator. At the stage of geological exploration the project financing will be effectuated by Gazprom. As part of the contract 2D seismic survey and geochemical survey have been performed, processing and interpretation of the acquired data is underway.

The Nagumanovskoye field located in the Orenburg Oblast has been identified as the basic target of the companies in Russia.