Gazprom and PetroVietnam to drill first deep-water well offshore Vietnam this year
On May 6, 2015, the Gazprom headquarters hosted a working meeting between Alexey Miller, Chairman of the Company’s Management Committee and Nguyen Xuan Son, Chairman of the PetroVietnam National Oil and Gas Group Board of Directors, Gazprom says in its press release.
The meeting addressed the main issues of the bilateral cooperation in hydrocarbon development, particularly the joint activities in blocks Nos. 129–132 in the continental shelf of Vietnam. The geological and geophysical data was processed and hydrologic studies were completed at the drilling sites. The drilling of a prospecting well in block No. 129 is scheduled to start in the second half of 2015. It would be the first deep-water well offshore Vietnam with the sea depth exceeding 1,600 meters at the drilling sites.
The participants also paid attention to the progress with the Heads of Agreement on developing the Nagumanovskoye (Orenburg Region) and Severo-Purovskoye (Yamal-Nenets Autonomous Area) fields.
In addition, the meeting touched upon the possible acquisition of a stake in Vietnam’s Dung Quat oil refinery by Gazprom and its participation in the refinery upgrade. It was noted that the Heads of Agreement on the oil refinery stake provided Gazprom with an exclusive right to negotiate the deal.
Vietgazprom, joint operating company of Gazprom and PetroVietnam, is engaged in exploration activities in blocks No. 112, 129, 130, 131, 132 located on the continental shelf of Vietnam. In 2013 Gazprom and PetroVietnam launched commercial gas production from the Moc Tinh and Hai Thach fields of licensed blocks 05.2 and 05.3 offshore Vietnam, with recoverable gas and condensate reserves amounting to 35.9 billion cubic meters and 15.2 million tons respectively.
In 2014 Gazprom and PetroVietnam signed the Framework Agreement on terms and conditions of the joint development of the Nagumanovskoye and Severo-Purovskoye fields.
The Nagumanovskoye oil, gas and condensate field holds 5.8 billion cubic meters of proven in-place gas reserves, 1,683 thousand tons of recoverable condensate reserves and 960 thousand tons of recoverable oil reserves. The proven in-place gas reserves of the Severo-Purovskoye gas and condensate field account for 45.5 billion cubic meters, the recoverable condensate reserves – 6,826 thousand tons. Gazpromviet holds a subsurface use license for both fields (Gazprom – 51 per cent, PetroVietnam – 49 per cent).
Dung Quat, Vietnam’s only oil refinery, has an output of 6.5 million tons per year.
In late 2014 Gazprom Neft and Binh Son Refining and Petrochemical signed the long-term agreement on delivering ESPO oil to Dung Quat.
In April 2015 Gazprom Neft and PetroVietnam signed the Heads of Agreement on acquiring a stake in the oil refinery by Gazprom Neft.
