NK-BP Gets PVN backing to buy BP’s Vietnam assets

TNK-BP has announced a cooperation agreement in which the Vietnam Oil and Gas Group (PVN) will support Russia’s third biggest oil firm to buy BP’s Vietnam assets.

The company said in a statement issued early this week that the agreement outlines “the further steps and activities to be undertaken as part of the (two) companies’ long-term cooperation.”

PVN will assist TNK-BP to enter to the Vietnamese oil and gas market through the acquisition of BP’s stake in upstream gas producer Block 06.1 and to further expand its downstream and upstream business operations in Vietnam.

In return, TNK-BP will throw support behind PVN’s plans to develop its upstream business in Russia, and to materialize this, the two firms will hold talks over the establishment of a joint venture in Russia.

The Daily’s attempt to reach Phung Dinh Thuc, general director of PVN, for confirmation of the news failed on Wednesday. Thuc is in charge of the issue.

Earlier, on October 18 this year, BP announced it had reached agreement to sell its upstream businesses and associated interests in Venezuela and Vietnam to TNK-BP for a total of US$1.8 billion.

TNK-BP, which is equally owned by BP and the AAR Consortium comprising Alfa Group, Access Industries and Renova, would buy BP’s 35% operating interest in the Lan Tay and Lan Do gas fields and associated pipeline and power generation interests in Vietnam.

Phung Dinh Thuc then said PVN was also considering buying BP’s interests in Vietnam.

TNK-BP said in the statement that it would supply ESPO crude for Vietnam on a long-term basis.

PetroVietnam Oil Corp. (PV Oil), a member of PVN, signed a contract in September to buy ESPO crude from TNK-BP over one year, PV Oil said on its website. TNK-BP will provide PV Oil with the first 100,000 tons of crude this month.- TheSaigontimes

Tags: Bp Vietnam assets, NK-BP, PVN