01/11/2018 15:47 GMT+7 Email Print Like 0

Oil and gas cooperation between Russia and Vietnam

Vietsovpetro, a joint venture between Vietnam and the former Soviet Union (now Russia), found the first ton of commercial oil in the fractured basement rocks of the Bach Ho (White Tiger) field on September 6, 1988, setting the foundation for Vietnam’s oil and gas industry. Before his official visit to Russia in early September, Party General Secretary Nguyen Phu Trong highlighted effective operations of Russian corporations such as Gazprom, Zarubezneft and Rosneft, which have helped ensure energy security for Vietnam in its development process.
The Vietnamese top leader said that Vietnam’s industrialization and modernization requires huge investment in developing infrastructure, energy and electricity. Vietnam has always created favorable conditions for Russian businesses to implement projects to modernize power plants built with the assistance from the former Soviet Union, as well as new energy projects.
Oil and gas cooperation is strategic politically and economically, the Vietnamese Party leader said, attaching importance to the use of atomic energy for peaceful purposes.

Late Prime Minister Pham Van Dong’s modest dream of drilling one million tons of oil per year from Bach Ho field 30 years ago was realized right after oil was discovered in basement rocks, which made Vietnam one of the oil exporters in Southeast Asia.

The Vietsovpetro’s flame-a symbol of the 30 plus year oil cooperation between Vietnam and Russia. Photo: VNP’s files

Russian experts work on a Vietsovpetro oil rig. Photo: VNP’s files

Vietsovpetro takes more than 1,000 tons of oil/day from each well in Bach Ho field
which has the largest flow of oil and gas in Southeast Asia. Photo: VNP’s files

Vietsovpetro leaders with the scale models of Bach Ho and Rong oil fields. Photo: VNP Files

Vietsovpetro’s discovery of oil in fractured basement rocks was the first case in the world’s petroleum geology, according to Ngo Thuong San, Chairman of the Vietnam Petroleum Association and former General Director of Vietnam Oil and Gas Group.  

Vietsovpetro, Rusvietpetro, Gazpromviet and Vietgazprom joint ventures are the symbols of effective cooperation between Vietnam and Russia. 
The discovery and successful recovery of oil from fractured basement rocks at Bach Ho were the result of the wise decision of the Politburo and the Government’s mobilization of all resources to build an oil and gas industry as a momentum for economic development. It was the fruit of the friendship between Vietnam and Russia, and the intellectual fervor of a former generation of scientists and economists who were keen on finding ways to develop the national economy.

“The oil and gas sector had contributed to bringing the country out of its socio-economic crisis and boosting the country’s industrialization and modernization”, said late Party General Secretary Do Muoi.

Vietsovpetro has so far recovered 220 million tons of oil, over 15 million tons of LPG and condensate, and brought ashore over 30 billion cubic meters of associated gas to supply Ba Ria, Phu My and Nhon Trach power plants, helping tackle energy, fuel and fertilizer shortages. With its revenues totaling about 75 billion US dollars, the joint venture is a major taxpayer.

The output of oil wells in the fields of Bach Ho and Rong (Dragon) recovered by Vietsovpetro has decreased after over 30 years of operation, said Ngo Thuong San. However, he pointed out that there are scientific grounds to believe that the oil and gas potential of Vietnam’s continental shelf remains promising and continued cooperation with Russian oil and gas groups will give encouraging results.