Geological exploration offshore Viet Nam. — Photo Gazprom.com

HA NOI (Biz Hub) — Gazprom and Viet Nam Oil and Gas Group (PetroVietnam) will jointly drill block numbers 129 to 132 in the continental shelf of Viet Nam this year, said a press statement issued by Gazprom on May 6.

This will be the first deep-water well to be drilled offshore this year.

The geological and geophysical data of the well has been processed and hydrologic studies have been completed at drilling sites. The depth of the sea will exceed 1,600m at the drilling sites of the deep-water well.

The two enterprises discussed with the Heads of Agreement the progress of the Nagumanovskoye (Orenburg region) and Severo-Purovskoye (Yamal-Nenets Autonomous Area) fields.

In addition, the meeting touched upon the possibility of Gazprom acquiring a stake in Viet Nam's Dung Quat oil refinery and participating in the refinery's upgrade. It was suggested that the Heads of Agreement on oil refinery stake provide Gazprom with an exclusive right to negotiate the deal.

Vietgazprom, a joint operating company of Gazprom and PetroVietnam, is engaged in exploration activities in block No. 112, 129, 130, 131, and 132 located on the continental shelf of Viet Nam.

In 2013, Gazprom and PetroVietnam began commercial gas production at the Moc Tinh and Hai Thach fields of licensed blocks 05.2 and 05.3 offshore Viet Nam, with recoverable gas and condensate reserves amounting to 35.9 billion cu.m and 15.2 million tonnes, respectively.

In 2014, Gazprom and PetroVietnam signed a Framework Agreement on terms and conditions for jointly developing the Nagumanovskoye and Severo-Purovskoye fields.

The Nagumanovskoye oil, gas, and condensate field holds 5.8 billion cu.m of proven in-place gas reserves, 1,683 thousand tonnes of recoverable condensate reserves, and 960 thousand tonnes of recoverable oil reserves.

The Severo-Purovskoye gas and condensate field has 45.5 billion cu.m of proven gas reserves and 6,826 thousand tonnes of recoverable condensate reserves. Gazpromviet holds a subsurface use licence for both fields (Gazprom – 51 per cent and PetroVietnam – 49 per cent).

Dung Quat, Viet Nam's only oil refinery, has an output of 6.5 million tonnes per year.

Gazprom Neft and Binh Son Refining and Petrochemical in late 2014 signed a 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. — VNS