Gazprom Signs Deal for 49% in Vietnam Offshore Project

Russian energy giant Gazprom has signed a deal to get a 49 percent stake in a project to develop offshore blocks 0.5.2 and 0.5.3 in Vietnam, Gazprom said on Thursday.

“In the presence of the Vietnamese president, agreements were signed on personnel training and retraining and Gazprom’s participation in the project to jointly develop licensed blocks 05.2 and 05.3 on the shelf of Vietnam,” the energy giant said in a statement.

The deal envisages Gazprom’s participation in the project on production-sharing terms. Gazprom will be represented in the project by a wholly-owned subsidiary, Gazprom International .

On December 15, 2009, Gazprom and Vietnam’s state-owned oil and gas company PetroVietnam signed a strategic partnership agreement, under which the parties undertook to continue joint development of deposits on Vietnam’s continental shelf blocks.

The licensed blocks 05.2 and 05.3 are located on Vietnam’s shelf in the South China Sea where Vietnam discovered two gas condensate deposits, Moc Tinh (within block 05.3) and Hai Thach (blocks 05.2 and 05.3), and also an oil deposit, Kim Cuong Day (block 05.2).

Total reserves of the two blocks are estimated at 55.6 billion cubic meters of gas and 25.1 million tons of gas condensate.

Gazprom and PetroVietnam intend to drill 16 operational wells with a depth of 2,000-4,600 meters to develop the blocks.


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