HCMC - Vietnam Oil and Gas Group, or PetroVietnam, is considering buying BP’s stakes in their joint projects in the country.
Phung Dinh Thuc, director general of PetroVietnam, told the Daily via the phone on Tuesday about his company’s plan a day after BP’s announcement that it had reached agreement to sell its upstream businesses and associated interests in Venezuela and Vietnam to its Russian joint venture for a total of US$1.8 billion.
TNK-BP, Russia’s third largest oil company, is owned equally by BP and AAR Consortium grouping Alfa Group, Access Industries and Renova.
“On Wednesday they informed us directly of the agreement. They said TNK-BP has been up to now their only partner chosen to make direct negotiations, and suggest the Russian company as purchaser,” Thuc said.
“BP has not let us know about the price of its stakes, but it’s certainly equivalent to the price offered by TNK-BP. If the price is reasonable for us, we will make a decision to buy the assets,” the director general added.
BP wanted to sell its assets in its Vietnam-based projects in a bid to make divestments of US$30 billion by the end of 2011 to pay for damages in the Gulf of Mexico oil spill.
However, PetroVietnam as a partner in such projects has some preferential rights, Thuc said, adding that within 60 days upon being informed of the agreement, the Vietnam group has the right to buy the stakes as well as to veto the deal.
Thuc explained the group could disapprove the deal if BP’s partner doesn’t have good technology and competence.
A representative of BP in Vietnam on Tuesday also confirmed the agreement, adding that BP needs regulatory approval from Vietnam’s Government to sell its assets in the country.
BP said the deal with its equal joint venture will help retain an economic interest in these assets and ensure the interests of BP’s shareholders.
BP’s stakes put up for sale include a 35% interest in offshore block 06.1, currently operated by BP, 370 kilometers offshore south-east Vietnam and containing the Lan Tay and Lan Do gas fields.
In addition, BP has a 32.67% interest in the 370 kilometer PetroVietnam-operated Nam Con Son pipeline that transports gas onshore from the Lan Tay and Rong Doi fields, and a 33.3% stake in the joint venture that owns and operates the 739MW Phu My 3 power plant in Ba Ria-Vung Tau Province.
TNK-BP has agreed to pay US$1.8 billion in cash for the assets. Under the agreement, TNK-BP will pay BP a total deposit of US$1 billion on October 29, with the balance due upon completion of the sale expected in the first half of next year.
The agreement is said not to affect BP’s other business activities in Vietnam, including a significant lubricants blending and marketing business.
TNK-BP will make an offer to buy BP Plc’s stake in an offshore natural-gas project in Vietnam and three assets in Venezuela as early as next week, said a person close to the Russian oil producer’s board. 