Reinsurers ink $1.5bil deal

International reinsurers CV Starr, AON, Chartis, Zurich and Allianz have jointly signed a US$1.5 billion contract in Ha Noi covering onshore projects and assets for the PetroVietnam Insurance Joint stock Co (PVI).

At the signing ceremony held last Friday, the PVI announced it had posted revenues totalling VND3 trillion ($162 million) so far this year, hitting a year-on-year increase of 33 per cent in 2009, while the average growth rate of the insurance sector was only 23 per cent.

The PVI also introduced two new affiliates, Petro-Vietnam Media Joint stock Co and PetroVietnam Securities Joint stock Co. The company plans to expand its activities to life insurance, reinsurance and set up a fund management company. The company also operates PVI Invest and PVI Finance.

Offshore oil contract

The PVI is an affiliate of the leading National Oil and Gas Group (PetroVietnam). In another move, late last week, PetroVietnam and five partners signed a joint operation agreement for the Nam Rong-Doi Moi oil field, offshore from the southern coastal province of Ba Ria-Vung Tau.

Among the partners, Vietsovpetro, a joint venture between PetroVietnam and Russian partners, has been appointed to operate the field in conjunction with the OAO Zarubezhneft Federation, the PetroVietnam Exploration and Exploitation Co (PVEP), the DK Idemitsu Cuu Long Co, VRJ Petroleum Co.

The agreement covers exploration, development and exploitation, and includes common operation principles and regulations on responsibilities and obligations of Vietsovpetro, according to PetroVietnam.

A framework agreement to explore and develop the field was signed in September 2008 between Vietsovpetro and the VRJ Co, PetroVietnam said.

At the agreement signing ceremony, Vietsopetro reported an expected output of 6.5 million tonnes of crude oil by the end of this year, 300,000 tonnes higher than its initial plan.

The joint venture predicts a total revenue of $3.2 billion with a net profit on the Vietnamese side hitting $1.96 billion, and the Russian partners taking $426 million this year.

Vietsopetro plans to tap 6-6.2 million tonnes of crude oil and 595 million cu.m of gas next year. With the estimated average price at $495 per tonne, its turnover will be more than $3 billion. The Vietnamese side will likely see net profits of $1.66 billion, with $327 million going to their Russian partners.

VietNamNet/Viet Nam News

Tags: Vietnam oil and gas