PetroVietnam Expands International Presence

In 2009, the Vietnam National Oil and Gas Group (PetroVietnam – PVN) signed 15 new oil and gas contracts (with operations in both Vietnam and other nations) and seven cooperation agreements with international oil firms. This was a successful year in overseas business of the group. In 2010, the group will continue to accelerate its perfomance.

Apart from ensuring its sustainable development and the national energy security and promoting explorative activities to increase oil and gas reserves on the Vietnamese continental shelf, the overseas oil and gas exploration and production investment is considered a strategic target of PetroVietnam Group. To gradually realise this goal, PVN has assigned its affiliates like PetroVietnam Exploration Production Corporation (PVEP), PetroVietnam Gas Corporation (PV Gas), Vietsovpetro Joint Venture, PetroVietnam Drilling and Well Services Corporation (PV Drilling), PetroVietnam Technical Services Joint Stock Corporation (PTSC), PetroVietnam Mud Joint Stock Corporation (DMC), PetroVietnam Insurance Joint Stock Corporation (PVI) to join efforts in exploring and producing oil and gas. To date, the group has invested in 22 projects abroad, including 20 projects operated by PVEP in 17 countries in Southeast Asia, the Middle East, Russia and independent states, and Latin America. Overseas cooperation investment is also carried out in flexible forms like production sharing contract, joint operating contract, joint venture contract, and service and concession contract.

In implementing strategic cooperation policies with other countries and territories, PVN has been actively investing to explore and produce oil and gas in Russia. The Rusvietpetro Joint Venture is developing Nhenhexky block in Russia on expectations of starting commercial productions from the third quarter of 2010. PetroVietnam holds 49 percent of stakes in the Rusvietpetro Joint Venture and Russia’s Zarubeznheft keeps the remaining 51 percent. During the Russia visit by Vietnamese Prime Minister in mid-December 2009, PetroVietnam signed a strategic cooperation agreement with Gazprom to expand its investment activities in Vietnam (through Vietgazprom Joint Operating Company), and in Russia and third countries (through GazpromViet Joint Venture Company).

Besides, the group has developed Blocks 433a & 416b in Algeria, and Blocks SK305 and PCUBIC METRES04 in Malaysia. Block SK305 is being expeditiously developed for first commercial oil flows from D30 and Dana fields in the second quarter of 2010. The first oil flows from Blocks 433a & 416b are expected to come on-stream in early 2012. Block PCUBIC METRES04 has started commercial production in September 2006 and the current output is averagely 14,500 barrels per day.

Currently, PetroVietnam and its affiliate PVEP are finalising necessary procedures for the signing of a joint venture contract for Block Junin 2 in Venezuela. PetroVietnam General Director Phung Dinh Thuc said signings of oil and gas contracts and overseas operations allow PetroVietnam to increase reserves. Specially, two projects in Russia and Venezuela are of crucial significance. The group is actively exploring and appraising its granted projects while seeking new opportunities.

Energy security is always a global burning issue. A solid position on international exploration, production, processing and service markets demonstrate the enormous effort and strong competitiveness of PetroVietnam and its member units.

VCCI

Tags: Petro Vietnam, Vietnam companies, Vietnam enterprises

Posted by VBN on Jun 18 2010. Filed under Enterprises. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry