Rosneft and PetroVietnam stepping up game in petrochemical sector

May 17, 2016 | 14:38

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Russian Rosneft and Vietnamese state-run oil and gas group PetroVietnam have signed an agreement to co-operate in the petrochemical sector, according to Rosneft’s website.

Photo source: Dmitry Astakhov/RIA Novosti

The signing ceremony yesterday occurred in the framework of Prime Minister Nguyen Xuan Phuc’s working visit to Russia during May 16-20.

According to the agreement, the two parties will implement mutual projects in hydrocarbon exploration, exploitation, and processing in Russia, Vietnam, and third countries. Besides, the two parties will increase co-operation in commerce, oil and gas services, and staff training.

The parties agreed to consider potential options for joint projects and define the basic terms of cooperation as well as establish a working group for each area of cooperation.

According to Igor Sechin, Rosneft’s chairman of the management board, after successful co-operation in offshore hydrocarbon exploration and production between Rosneft and PetroVietnam, the Russian partner is interested in deepening co-operation in the petrochemical, as well as oil and gas services and training sectors, helping Rosneft to expand its operations to the Asia-Pacific region.

Nguyen Quoc Khanh, chairman of the Board of Directors of PetroVietnam, said that they stood ready to provide full support to Rosneft’s plans in Vietnam and welcomed further developments of cooperation between two companies.

Rosneft and PetroVietnam currently operate a project of gas and condensate production and offshore exploration in Vietnam (Block 06.1), through the Russian partner’s subsidiary Rosneft Vietnam B.V. The project is based on a Production Sharing Agreement (PSA) on two gas condensate fields-Lan Tay and Lan Do. The fields are located 370 kilometres off the coast in Nam Con Son basin, with a sea depth of up to 190 metres. Since the fields’ development started, about 50 billion cubic metres of gas was produced.

Rosneft and PetroVietnam also have stakes in Nam Con Son pipeline, which transports gas and condensate from Nam Con Son basin’s offshore blocks to an onshore power generation facility.