Russ Oil-Gas

May 26, 2008 - Kommersant - Gazprom has received four lots on the Vietnamese continental shelf for joint development with the national Petrovietnam company. If substantial reserves are found, Gazprom may enter Vietnamese markets as well, such as natural gas transport and refining. In return, the Vietnamese company will receive entry into Russia. The companies signed an agreement on Friday. The signatories will form a new company, Vietgazprom, as the operator of the project. Zarubezhneftegaz will represent the interests of Gazprom in the joint venture. Another joint venture, Gazpromviet, will be formed for joint operations in Russia and third countries. No Russian projects have been chosen yet. Gazprom chief Alexey Miller and Petrovietnam president Tran Ngoc Canh discussed joint projects in North Africa, Latin America and Angola. Vietsovpetro, in which Zarubezhneftegaz owns 50 percent, is the most successful Russian project in Vietnam so far. It was founded in 1981 and produces 8-9 million tons of oil per year. Vietgazprom has been operating a well on the Vietnamese continental shelf under a 2001 contract. An industrial gas flow began from that well in August of last year. The new blocks are located considerably to the south of that site. A Gazprom source says that monopoly will invest $380 million in geological exploration in the next seven years. That source added that Gazprom received the blocks without tender or competition in exchange for taking on all investment risks. Another source said that major Western companies were also interested in those blocks.