Today in Sochi, Alexey Miller, Chairman of the Gazprom Management Committee, Nguyen Vu Truong Son, Director General, member of the Petrovietnam Board of Directors, and Nguyen Quan Chinh, Deputy Chairman of the People’s Committee of Quang Tri Province, signed a Memorandum on the Roadmap for the Integrated Project Development of the Bao Vang Field – power plant construction in Quang Tri Province.
The signing took place in the presence of Vladimir Putin, the President of the Russian Federation, and Nguyen Phu Trong, the Secretary General of the Central Committee of the Vietnam Communist Party.
Memorandum reflects the intention of the parties to implement the Integrated Project. It provides for the supply of gas from the Bao Vang field (discovered by the joint operating company of Gazprom and Petrovietnam - Vietgazprom) to a power plant to be built in the province of Quang Tri in central Vietnam. At present within the development of this province the Dong Nam economic zone is taking shape, which presumes the construction of industrial, logistics and port infrastructure.
According to the Memorandum, additional exploration of the Bao Wang field will be carried out, the reserves estimation will be updated and, subject to economic expediency, the decision will be made on its further development. The project for the construction of the power plant is currently under consideration at the Ministry of Trade and Industry of Vietnam. In accordance with the Memorandum, the project will be included in the state plan for the development of the republic’s electric power industry for the period until 2030.
“Gazprom and Vietnam share long-standing partnerships in a number of areas. The new joint project will increase economic efficiency of our work on the development and monetization of hydrocarbons in the country. In addition, the project will stimulate the development of the infrastructure of the entire central region of Vietnam, the Dong Nam economic zone and the preservation of the ecological balance through the use of clean fuel”, - said Alexey Miller.
The Vietnam group Petrovietnam is engaged in the exploration, production, processing, transportation and sales of hydrocarbons. Strategic Partnership Agreement is in force between Gazprom and Petrovietnam. The joint operating company of Gazprom and Petrovietnam - Vietgazprom (created on an equal footing) is conducting prospecting on blocks 111/04, 112, 113 and 129-132 of Vietnam’s continental shelf. In 2007-2016, the Bao Vang and Bao Den gas condensate fields were discovered, as well as the Than Bien deep-water hydrocarbon gas field. Gazprom EP International B.V, a specialized company for the implementation of foreign projects in the field of prospecting, exploration and development of hydrocarbon fields, represents Gazprom in this joint venture.
Since 2013 Gazprom EP International B.V. and Petrovietnam have been conducting industrial production of gas and gas condensate at the Moc Tinh and Hai Thach fields on the shelf of Vietnam.