Russia to provide ESPO crude oil for Vietnam

Photo: Reuters

Russia’s TNK-BP Oil Group will provide the first shipment of 100 tons of crude oil for the PetroVietnam Oil Corporation (PV Oil) via the Eastern Siberia-Pacific Ocean (ESPO) in November this year.

To this effect, a contract was signed between PV Oil General Director Nguyen Xuan Son and Deputy Chairman of TNK-BP’s Management Board Maksim Barskiy in Moscow on September 29 at the presence of Vietnamese Deputy Prime Minister Hoang Trung Hai.

Speaking after the signing ceremony, Deputy PM Hai expressed his hope that the partnership between PV Oil and TNK-BP will further develop and harvest more results in the future.

He stressed that the signing of the ESPO crude oil contract will be the foundation for the two sides to expand cooperation, including the exchange of experiences in crude oil trading and processing.

The Deputy PM declared that the Vietnamese government supports the cooperation between PetroVietnam and TNK-BP in exploring and exploiting oil and gas in the two countries’ territories and in third countries.

PV Oil General Director Nguyen Xuan Son said he hoped that after the signing, TNK-BP will continue to participate in oil processing, refinery and distribution in Vietnam .

The contract was an initial step for the two companies to sign other agreements in order to boost cooperation and mutual investment, he added.

According to PetroVietnam General Director Phung Dinh Thuc, PetroVietnam considers Russia a strategic area and with the contract, TNK-BP has become the third biggest partner of PetroVietnam and PV Oil, after Zarubezhneft and Gazprom.

He informed that the first oil stream resulting from the cooperation between PetroVietnam and Zarubezhneft will run in the next several days.

PetroVietnam has so far signed 20 oil and gas contracts with foreign companies, he added.

 

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PetroVietnam pumps first crude in Russia

A joint venture between PetroVietnam and the Russian oil group of Zarubezhneft has pumped the first crude oil from well in Russia’s autonomous Nenesky region, PetroVietnam has announced.

The Vietnamese oil giant said it was the outcome of two years’ hard working following the establishment of the Rusvietpetro joint venture and one year’s exploration.

In addition to investment in oil well construction and exploration, the joint-venture has built a central oil collection and processing station, installed a system of oil pipes and erected an oil reception and delivery station.

The joint venture is ready to embark on industrial-scale production with an expected output of 3,000 tons of crude a day (equivalent to 21,000 barrels a day).

PetroVietnam signed a deal with Zarubezhneft on December 24, 2008, under which it holds a 49 percent stake in Rusvietpetro to produce oil from four oil fields in Russia ’s autonomous Nenesky region.

Exploration work has detected 13 oil wells estimated to hold up 95.6 million tons of crude.

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PetroVietnam pumps first crude in Russia

A joint venture between PetroVietnam and the Russian oil group of
Zarubezhneft has pumped the first crude oil from well in Russia ’s
autonomous Nenesky region, PetroVietnam has announced.

The Vietnamese oil giant said it was the outcome of two years’ hard
working following the establishment of the Rusvietpetro joint venture
and one year’s exploration.

In addition to
investment in oil well construction and exploration, the joint-venture
has built a central oil collection and processing station, installed a
system of oil pipes and erected an oil reception and delivery station.

The joint venture is ready to embark on
industrial-scale production with an expected output of 3,000 tonnes of
crude a day (equivalent to 21,000 barrels a day).

PetroVietnam signed a deal with Zarubezhneft on December 24, 2008, under
which it holds a 49 percent stake in Rusvietpetro to produce oil from
four oil fields in Russia ’s autonomous Nenesky region.

Exploration work has detected 13 oil wells estimated to hold up 95.6 million tonnes of crude.

The ceremony to celebrate the first oil flow will take place in Russia on September 30./.

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Russia to provide ESPO crude oil for Vietnam

Russia ’s TNK-BP Oil Group will provide the first shipment of 100
tonnes of crude oil for the PetroVietnam Oil Corporation (PV Oil) via
the Eastern Siberia-Pacific Ocean (ESPO) in November this year.

To this effect, a contract was signed between PV Oil General Director
Nguyen Xuan Son and Deputy Chairman of TNK-BP’s Management Board Maksim
Barskiy in Moscow on September 29 at the presence of Vietnamese
Deputy Prime Minister Hoang Trung Hai.

Speaking
after the signing ceremony, Deputy PM Hai expressed his hope that the
partnership between PV Oil and TNK-BP will further develop and harvest
more results in the future.

He stressed that the
signing of the ESPO crude oil contract will be the foundation for the
two sides to expand cooperation, including the exchange of experiences
in crude oil trading and processing.

The Deputy PM
declared that the Vietnamese government supports the cooperation
between PetroVietnam and TNK-BP in exploring and exploiting oil and gas
in the two countries’ territories and in third countries.

PV Oil General Director Nguyen Xuan Son said he hoped that after the
signing, TNK-BP will continue to participate in oil processing, refinery
and distribution in Vietnam .

The contract was
an initial step for the two companies to sign other agreements in order
to boost cooperation and mutual investment, he added.

According to PetroVietnam General Director Phung Dinh Thuc,
PetroVietnam considers Russia a strategic area and with the
contract, TNK-BP has become the third biggest partner of PetroVietnam
and PV Oil, after Zarubezhneft and Gazprom.

He
informed that the first oil stream resulting from the cooperation
between PetroVietnam and Zarubezhneft will run in the next several days.

PetroVietnam has so far signed 20 oil and gas contracts with foreign companies, he added./.

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Vietnam seeks term crude imports for Dung Quat refinery

Photo: Reuters

SINGAPORE/HANOI - Vietnam is seeking to import crude from various sources for its domestic refinery to produce more diesel and free up local supply from Bach Ho and Nam Rong-Doi Moi fields for exports, industry sources said on Tuesday.

State oil company PetroVietnam inked on Monday a framework agreement with BP's joint venture in Russia, TNK-BP, to buy Russian ESPO crude oil blend.

The first cargo of 100,000 tons will load in November in the Pacific Ocean port of Kozmino, the outlet for the blend, as a part of the deal.

One source said Vietnam is looking at securing a 100,000-tonne cargo of the medium-heavy sweet ESPO each month for a year under the framework deal which is being finalized.

Vietnamese officials are likely to meet TNK-BP next week to discuss details, the sources said.

"ESPO's diesel yield is quite high so there's more incentive to process ESPO," Sam Saw, a Singapore-based analyst at FACTS Global Energy said.

The move will allow better quality light sweet Bach Ho to be exported to Japan and South Korea, he said.

PV Oil, a subsidiary of the state oil group, signed in June a contract with Dung Quat to supply 300,000 tons of crude, including Ca Ngu Vang, Doi Moi and Bach Ho, by the year end.

Vietnam's crude oil exports between January and August plunged 44.2 percent from the same period last year to an estimated 5.49 million tons, or 165,600 barrels per day, the government said last month.

ESPO will be blended with local sweet grades to reduce its sulphur content, the sources said.

Vietnam's 140,000-bpd refinery can only process sweet crude.

PetroVietnam is evaluating different grades of crude oil for its Dung Quat refinery and has used light sweets such as Azeri Light and Malaysia's Miri and Kikeh, the sources said.

It has signed earlier another framework agreement with BP to buy term crude, one source said.

Negotiations are under way to finalize the grades and other contract details, he said, adding that the five-year term deal may start next year.

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