Russia, Vietnam Sign Oil and Gas Agreement

Excerpt from report by Russian state news agency ITAR-TASS

Moscow, 23 May: Gazprom and Petrovietnam today signed an agreement on geological survey and further development of four new hydrocarbon blocks on Vietnam’s shelf, the Russian company’s press service reported. They are also setting up a joint enterprise to take part in projects in Russia and other countries.

The operator of the project to develop the four blocks will be the joint company Vietgazprom, the press service said. “The agreement also provides for the establishment by the sides of a joint enterprise, Gazpromviet, to support the companies’ participation in oil and gas projects on the territory of Russia and other countries,” the report says.

In this joint enterprise Gazprom will be represented by its wholly owned subsidiary Zarubezhneftegaz.

Gazprom’s and Petrovietnam’s joint operational company Vietgazprom is conducting a geological survey of the Ch112 block on Vietnam’s continental shelf. The contract provides for exploration, survey, production and sale of hydrocarbons. In August 2007, commercial flows of natural gas began in this bloc. The presence of gas condensate was detected in the discovered field.

The agreement was signed during a visit to Vietnam by a Gazprom delegation led by company chief Aleksey Miller. Miller met Vietnamese President Nguyen Minh Triet and Prime Minister Nguyen Tan Dung. [Passage omitted]

Originally published by ITAR-TASS news agency, Moscow, in Russian 1054 23 May 08.

(c) 2008 BBC Monitoring Former Soviet Union. Provided by ProQuest Information and Learning. All rights Reserved.