The Gazprom headquarters hosted today a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Phung Dinh Thuc, President and CEO of Petrovietnam State Oil and Gas Corporation.

The parties discussed the key areas of bilateral cooperation, in particular the progress with geological exploration of the Vietnamese continental shelf. The meeting appraised the level of cooperation during offshore operations in Vietnam.

In addition, Alexey Miller and Phung Dinh Thuc discussed organizational issues of the Gazpromviet joint venture operations and business development prospects. Petrovietnam was advised to consider the resource base expansion within the JV.

The parties stated their intention to continue dialogue on cooperation development during the second meeting of the Joint Coordinating Committee to take place in March 2011.

After the working meeting Alexey Miller was officially awarded the Order of Labor (Class I) of the Socialist Republic of Vietnam by the country's Ambassador Extraordinary and Plenipotentiary to Russia Bui Dinh Dinh on behalf of Vietnamese President Nguyen Minh Triet.

Valery Gulev, Managing Director of Gazprom EP International B.V. was also awarded the Order of Labor (Class II). The Vietgazprom joint operating company was rewarded with the Order of Labor (Class III).

Background:

On September 11, 2000 Gazprom and Petrovietnam signed a contract that contemplated searching for, exploring, producing and marketing hydrocarbons in block 112 offshore Vietnam. To implement this contract Gazprom and Petrovietnam established a joint operating company, Vietgazprom. As a result of the geological exploration performed in 2007, the Bao Vang gas and condensate field was discovered in the block.

In May 2008 Gazprom and Petrovietnam inked the Agreement for Further Cooperation. The Agreement stipulates geological exploration and further development of four new blocks offshore Vietnam as well as incorporation of the Gazpromviet joint venture to run its business in Russia and third countries with the following shareholding structure: Gazprom – 51 per cent and Petrovietnam – 49 per cent.

In October 2008 Gazprom and Petrovietnam signed a 30-year Oil and Gas Contract for blocks 129, 130, 131, 132 on the continental shelf of the Republic of Vietnam. The document stipulates hydrocarbons exploration, development and production in these blocks. The Contract will be implemented on the PSA terms. Vietgazprom will act as the project operator. At the geological exploration phase the project financing is carried out by Gazprom. As part of the Contract, 2D seismic exploration and geochemical research operations were performed. The obtained data is under processing and interpretation.

On December 15, 2009 Gazprom and Petrovietnam entered into the Agreement on Strategic Partnership. In line with the document the parties will continue their joint operations in the Vietnamese offshore blocks as contemplated by previously signed oil and gas contracts. They will also study future prospects for cooperation between the companies in vacant Vietnamese licensed blocks.

The Agreement also contemplates active partnership between Gazprom and Petrovietnam on oil and gas projects in Russia, Vietnam and in third countries within the newly created company Gazpromviet.

The Nagumanovskoye oil, gas and condensate field located in the Orenburg Oblast was defined as the major object of the companies' cooperation in Russia. The joint venture may be involved in operations at other licensed blocks in the long run.