07/09/2018
Press release: Around 21 per cent of Vietnamese gas produced within Bien Dong joint project of Russia and Vietnam
A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Nguyen Phu Trong, General Secretary of the Central Committee of the Communist Party of the Socialist Republic of Vietnam, took place in Moscow today.
The parties addressed a wide array of bilateral cooperation issues. Appreciation was expressed for Bien Dong, a large gas production project in Vietnam pursuing joint development of the Moc Tinh and Hai Thach fields in blocks Nos. 05–2 and 05–3. In 2017, Bien Dong accounted for 20.8 per cent (2 billion cubic meters) of Vietnam’s overall gas production, with over 9 billion cubic meters of gas and 2 million tons of gas condensate extracted since the project’s inception.
Alexey Miller and Nguyen Phu Trong considered issues related to cooperation deepening in the area of field exploration and development in Vietnam.
Special attention was paid to prospective collaboration in gas-fired power generation, gas use as a vehicle fuel, LNG supply, personnel training and sci-tech cooperation projects.
During the official visit of Nguyen Phu Trong to the Russian Federation, a decision was made to approve a feasibility study for a pilot project aimed at constructing a Vietnam-based small-scale plant for the production of LNG to be used as a vehicle fuel. The project operator is the PVGAZPROM Natural Gas for Vehicles joint venture involving Gazprom EP International B.V., Gazprom Gazomotornoye Toplivo and PETROVIETNAM GAS. The signed document paves the way for the practical implementation of the project.
Background
Vietnam’s PetroVietnam Group is focused on hydrocarbon exploration, production, processing, transportation and marketing. Gazprom and PetroVietnam collaborate under the Agreement on strategic cooperation.
Vietgazprom, a joint operating company established by Gazprom and PetroVietnam on a parity basis, is engaged in exploration in licensed blocks Nos. 111/04, 112, 113 and 129–132 located on the continental shelf of Vietnam. In 2007–2016, the Bao Vang and Bao Den gas and condensate fields were discovered along with the Than Bien deepwater petroleum gas field. Gazprom is represented in the joint venture by Gazprom EP International B.V., a specialized company for the implementation of hydrocarbon prospecting, exploration and development projects outside Russia.
Since 2013, Bien Dong POC, operator of the joint project implemented by Gazprom EP International B.V. and Petrovietnam in blocks Nos. 05–2 and 05–3 on the shelf of Vietnam, has been engaged in commercial production of gas and gas condensate from the Moc Tinh and Hai Thach fields.
In 2015, PVGAZPROM Natural Gas for Vehicles, a joint Russian-Vietnamese company focused on the use of natural gas as a vehicle fuel, was registered. The joint venture consists of Gazprom International (35.5 per cent), Gazprom Gazomotornoye Toplivo (35.5 per cent), and PETROVIETNAM GAS (29 per cent).
On September 6, 2018, Gazprom, PetroVietnam and the Quang Tri Provincial People’s Committee signed the Memorandum of Cooperation.
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