First Gas Flows from Vietnam’s Offshore Blocks

Led by Alexey Miller, Chairman of the Management Committee, Gazprom’s delegation paid a visit today to the Socialist Republic of Vietnam.

During the visit Alexey Miller held a working meeting with Truong Tan Sang, President of Vietnam. In addition, negotiations were held with Phung Dinh Thuc, Chairman of the Board of Directors of Petrovietnam Oil and Gas Group and Do Van Hau, President and CEO of Petrovietnam.

In the presence of the companies’ top officials a solemn ceremony took place on the occasion of launching commercial gas production from the fields of licensed blocks 05.2 and 05.3 offshore Vietnam, with 8.5 million cubic meters of gas and 3.5 thousand tons of gas condensate to be daily produced there. Blocks 05.3 and 05.2 are located in the southeastern part of the Vietnamese shelf, in the Nam Con Son oil- and gas-bearing basin, 300 kilometers away from Vung Tau.

In addition, the Gazprom Management Committee Chairman Alexey Miller and the Petrovietnam President and CEO Do Van Hau signed the Agreement on the basic principles of the joint venture activities under a project for natural gas use as a vehicle fuel in the Republic of Vietnam. The document stipulates promoting the cooperation between the companies in the NGV sector, particularly when converting public transport in Ho Chi Minh City to natural gas.

“The implementation of such large-scale joint projects will make it possible to bring the cooperation between our companies to a new level of strategic importance. I am sure it will make a significant contribution to developing the fuel and energy sector of Vietnam and providing its consumers with an environmentally friendly fuel over the long term,” said Alexey Miller.

The parties reached the agreement to speed up the negotiating process surrounding liquefied natural gas supplies to Vietnam within the Vladivostok-LNG project and sign a Framework Agreement concerning LNG supplies before the end of 2013.

The visit ended up with an awards ceremony where the superior honor awards of the Socialist Republic of Vietnam were presented. Vitaly Markelov, Deputy Chairman of the Gazprom Management Committee and Vsevolod Cherepanov, Member of the Management Committee, Head of the Gas, Gas Condensate and Oil Production Department were awarded the Order of Friendship of the Socialist Republic of Vietnam for the merits in the development of Vietnam’s oil and gas industry.

[mappress]
Press Release, October 07, 2013