Background

Gazprom and Petrovietnam entered into the Agreement on Strategic Partnership in 2009. In line with the document, the parties will continue jointly operating in Vietnam's offshore blocks and studying further prospects for cooperation in vacant licensed blocks of the Republic. The Agreement also contemplates a pro-active interaction between Gazprom and Petrovietnam in oil and gas projects across Russia, Vietnam and third countries within Gazpromviet.

Vietgazprom, joint operating company of Gazprom and Petrovietnam, is engaged in exploration activities in blocks No. 112, 129, 130, 131, 132 located in the continental shelf of Vietnam. In October 2013 Gazprom and Petrovietnam launched commercial gas production from the Moc Tinh and Hai Thach fields of licensed blocks 05.2 and 05.3 offshore Vietnam, with recoverable gas and condensate reserves amounting to 35.9 billion cubic meters and 15.2 million tons respectively.

In October 2013 Gazprom and Petrovietnam signed the Agreement on the basic principles of the joint venture activities under a project for natural gas use as a vehicle fuel in the Republic of Vietnam. The document stipulates promoting the cooperation between the companies in converting public transport in Ho Chi Minh City to natural gas. Gazprom Gazomotornoye Toplivo and Gazprom International represent Gazprom in the project.

In 2012 Gazprom Marketing & Trading Singapore and Vietnamese Petrovietnam Gas Joint Stock Corporation signed the Memorandum of Understanding for cooperation in the LNG supply sector. On March 4, 2014 the parties signed Heads of Agreement for LNG supply to the Thi Vai terminal in southern Vietnam.

Dung Quat, Vietnam's only oil refinery, has an output of 6.5 million tons per year and consumes some 85 and per cent of domestically produced oil and 15 per cent of oil exported from the Middle East.