Russian gas monopoly Gazprom, PetroVietnam, and the Quang Tri Provincial People’s Committee have signed a memorandum of cooperation to explore the Bao Vang field.
Gazprom CEO Alexey Miller, PetroVietnam CEO Nguyen Vu Truong Son and Quang Tri Provincial People’s Committee Vice Chairman Nguyen Quan Chinh signed the MoU on September 6 in the presence of Russian President Vladimir Putin and the General Secretary of Vietnam’s Central Committee of the Communist Party Nguyen Phu Trong.
According to Gazprom, the Memorandum reflects the intention of the parties to deliver an integrated project. It envisages supplying gas from the Bao Vang field – discovered by Vietgazprom, a joint operating company established by Gazprom and PetroVietnam – to a power plant that will be built in the Quang Tri Province in the central part of Vietnam. At present, efforts are underway to establish within the Quang Tri Province a special area – the Dong Nam Economic Zone – where it is planned to set up industrial, logistics and port infrastructure.
In line with the Memorandum, additional exploration will be carried out at the Bao Vang field, with an updated reserves estimate and, if deemed economically viable, an option for follow-up development, Gazprom said. The power plant construction project is currently under consideration at the Ministry of Industry and Trade of Vietnam. According to the Memorandum, the project will be included in the government plan for the development of Vietnam’s power industry until 2030.
“Gazprom and Vietnam have a long history of partnership in a variety of areas. The new joint project will allow us to increase the economic effectiveness of our hydrocarbon exploration and marketing efforts in Vietnam,” Miller said. “It will also stimulate infrastructure development throughout the country’s central region, including the Dong Nam Economic Zone, and will help preserve the ecological balance thanks to the use of eco-friendly fuel,” he added.
Vietnam’s PetroVietnam Group is focused on hydrocarbon exploration, production, processing, transportation and marketing. Gazprom and PetroVietnam collaborate under the Agreement on strategic cooperation.