Gazprom’s Headquarters today hosted a working meeting between Alexey Miller, Chairman of the Company’s Management Committee and Tran Ngoc Canh, President & CEO of Petrovietnam Vietnam National Oil and Gas Group.

The parties examined the progress with the Agreement for Further Cooperation between Gazprom and Petrovietnam, particularly the organizational issues surrounding the setting up of a joint venture, Gazpromviet, for securing the companies’ participation in oil and gas projects in Russia and other countries. The parties also addressed the potential for further bilateral cooperation on the territory of Vietnam.

Background:

At present, Vietgazprom, a Joint Operating Company of Gazprom and Petrovietnam, is engaged under the September 11, 2000 Contract in prospecting in Block 112 offshore the Socialist Republic of Vietnam. 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 fuelling 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.

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.