Gazprom, PetroVietnam to Work on Pechora Sea Shelf’s Upstream Projects

The signing ceremony took place in the presence of Vladimir Putin, President of Russia and Nguyen Phu Trong, General Secretary of the Communist Party of Vietnam Central Committee.

The document outlines the main terms for the projects’ implementation, in particular, the timeline for decision-making to start the development operations, a marketing concept as well as general principles of price setting and project financing. The Gazpromviet joint company (Gazprom holds a 51 per cent stake and Petrovietnam – a 49 per cent stake) will be responsible for the implementation of the Agreement.

“Gazprom stays focused on developing the long-term strategic relationship with Vietnam. We are successful in joint gas production from the Republic’s shelf; we are also engaged in oil refining projects as well as develop the NGV sector in Vietnam. Today’s Agreement will reinforce our partnership in gas production on the Russian territory. It is for the first time when a company from Asia-Pacific acts as a business partner and co-investor of Gazprom’s promising fields in Russia,” said Alexey Miller.

Gazprom Neft reported Monday that it has signed several agreements with Vietnam Oil abd Gas Group (PetroVietnam), including a memorandum on joint oil and gas exploration, production and development projects on the Pechora Sea shelf in Russia.

The upstream agreement, covering Pechora Sea shelf projects with a focus on the Dolginskoye field and the Severo-Zapadnyi (North West) licensed block, was signed in Hanoi, Vietnam by Chairman of Gazprom Alexander Dyukov and his PetroVietnam counterpart Nguyen Xuan Son.

“The two parties have agreed to create a dedicated working group of experts from both companies. By the end of October, the parties will form a list of priority oil and gas fields and agree the basic terms of the partnership before further agreements are signed,” Gazprom said in a press release.

Gazprom and PetroVietnam will then execute the Pechora Sea shelf oil and gas projects through joint ventures and stakes in these partnerships will be decided through negotiations.

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