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Rosneft and PetroVietnam agree upon creation of JV for work on the Pechora Sea shelf
05 September 2014Rosneft and PetroVietnam Oil and Gas Group reached an agreement to create joint ventures for work at two blocks of the Pechora Sea shelf.
Rosneft share in the JV will amount to 66.67%, PetroVietnam will get 33.33%.
The agreements were reached within the Agreement on general cooperation for geological exploration, hydrocarbons exploration and production on the Pechora Sea shelf regarding Yuzhno-Russky and Zapadno-Matveevsky license blocks signed by the companies 12 November 2013 within the framework of President of the Russian Federation Vladimir Putin visit to Vietnam.
Overall recoverable reserves from the two blocks are estimated at 367 million tons of oil and 64 billion cubic meters of gas; overall ABC1+C2 recoverable reserves are 13 million tons of oil and 52 billion cubic meters of gas. Geological Prospecting and Exploration in compliance with license commitments regarding the two blocks requires drilling of 5 exploration wells and seismic survey, and is provisionally estimated at 1.5 billion dollars.
The parties particularly noted best practices of mutually beneficial cooperation and strong confidence between the companies on the shelf of Vietnam. PetroVietnam representatives expressed their readiness to participate in new projects in Russia, and also to assist expansion of Russian projects on the Asian-Pacific Region market.
Notes for Editors:
Currently Rosneft participates in the projects of gas and gas condensate recovery within two blocks in the shelf area of Vietnam:
- 06.1 Rosneft Vietnam B.V. block owns 35% in the project, is a project operator for production, processing, and transportation of hydrocarbons (gas and gas condensate); initial gas reserves are about 68 billion cubic meters.
- 5.3/11 Rosneft Vietnam B.V. block owns 100% in the project, is a project operator; The current resource assessment is 38,4 billion cubic meters of gas and 39 million tons of gas condensate. The Company currently carries out seismic interpretation within the geological exploration works.
- Nam Con Son pipeline project Rosneft Pipeline B.V. owns 32.7 %. The project carries out transportation of hydrocarbons from Nam Con Son petroleum basin to onshore energy production objects.
Rosneft Information Division
September 5, 2014