28th Anniversary Celebration of Joint Venture Vietsovpetro

During its 28 years’ construction and development, Vietsovpetro has accomplished a number of basic achievements, as follows:

Economics - Politics

Firstly, J/V Vietsovpetro has built infrastructure and technical system that serve development of petroleum industry. A synchronized, complete and advanced technical system has been set up offshore to supply oil & gas production. In land, swamps with wild aegiceras have been replaced by a complex of installations, workshops, warehouses, port logistics facilities that ensure petroleum exploration and production of Vietsovpetro and petroleum industry during the last 28 years, and for future as well.

Secondly, Vietsovpetro has become main force of Vietnam’s petroleum industry and economy. Three oilfields with commercial oil - White Tiger, Dragon and Big Bear - were discovered and brought into production with low exploration costs, besides 4 adjacent structures with hydrocarbon indication. In particular, discovery of big oil reservoir in White Tiger basement has been an essential factor to increase oil output, and at the same time to attract foreign investment into Vietnamese petroleum industry. To date, Vietsovpetro has produced more185 million tons of crude oil from White Tiger, Dragon and Big Bear oilfields; more 21 billion m3 of associated gas and LPG has been gathered and transported ashore. 80% of Vietnam’s produced oil & gas comes from Vietsovpetro, bringing Vietnam to the 3rd ranking in oil production and export in South East Asia.

Vietsovpetro’s total crude-oil turnover up to now has come up to US$ 33 billion, contributing US$ 20.2 billion to Vietnam’s state budget (22-25% state income), and US$ 5.6 billion profit to Russian party. The Russian party recovered its initial capital by mid 1996, while the Vietnamese party - in 1993.

Thirdly, Vietsovpetro has become driving force for development of central and local industry & service, an important role in bringing internal force of Vietnam’s economy into play. Supply of gas from White Tiger field to shore since 1995 has brought with it the establishment and development of energy, fertilizer-chemicals, and fuel gas industry in Baria-Vungtau province, as well as shipping repair, port & warehouse services, agencies for petroleum products distribution, and improving tourism.

Petroleum Exploration & Production Techniques

Existence and development of Vietsovpetro are by themselves clear evidence of petroleum scientific achievements. Vietsovpetro was the first to discover and efficiently exploit the unique oil reservoirs in basement. Such unconventional tasks require Vietsovpetro’s employees to exercise every effort and put the best of their scientific knowledge into application. As the result, not only were more basement reservoirs, such as Dragon, Big Bear, Eagle… discovered, but also suitable technical solutions worked out for optimum exploitation of subsoil resources. Those are the factors attracting foreign investors to petroleum exploration and production on Vietnam’s southern continental shelf, and attention of worldwide scientists as well. Vietsovpetro has successfully organized a number of scientific workshops, most recently - the international conference “Basement Reservoir”. Experience and studies of this joint venture have been multiplied and widely applied in Vietnam and in the world. Various “initiatives and inventions” campaigns in the joint venture bring practical benefits, making significant contributions to fulfillment of Vietsovpetro’s petroleum exploration and production targets.

During the last 28 years, Vietsovpetro has trained a number of management staffs, technical specialists and skillful workers, who are able to master specific equipment and operation cycle. Vietsovpetro is also a training center of petroleum industry. Many among PetroVietnam’s and Russian top management and leading experts come from Vietsovpetro “cradle”.

Achievements in other fields

Vietsovpetro plays an important role in the development of local economy and culture. During the last years, the joint venture has contributed more than US$ 31.2 million from internal fund and dozens of billion dongs from volunteer contributions of VSP personnel into building infrastructure, historical-cultural vestige, schools, hospitals, “kindness repayment” houses, to Mother-Heroines care-taking, poverty alleviation, supporting domestic and foreign natural-calamity sufferers…

Besides, Vietsovpetro has put experience, equipment capacity and free work-hours into full utilization by supplying services to other petroleum companies. Total accumulated turnover from service activities has come up to US$ 500 million. Reputation of the joint venture in service supply is gradually rising, thus usually assigned to crucial commitments, such as building national-defense DK facilities, drilling exploration wells in exclusive economic zones on the continental shelf, construction of gas pipelines for Camau gas-power-fertilizer development program.

Achievements in international cooperation:

Vietsovpetro’s more 28 years cooperation has become symbol of traditional friendship between Vietnam and the former Soviet Union - now Russian Federation. Relationship of VSP personnel in daily work is built on friendship, mutual understanding, assistance and support, for proper fulfillment of assigned tasks. Good understanding among the personnel working side by side has created collective strength that helps the joint venture overcome numerous difficulties and challenges, for stable development of Vietsovpetro.

Great achievements of Vietsovpetro have been highly appreciated and awarded by Vietnamese governments, twice with the noble appellation “Labor Hero”, 3 Independence orders, 2 Victory orders, many Labor orders, and a number of others, to praise excellent accomplishments of VSP collectives and individuals.

Such great achievements are results of tireless efforts of the current 6,500 employees, of total 9,189 Vietnamese and 6,604 Russian participations ever since VSP establishment. They have worked with all their might, some sacrificed part of their bodies, some even their lives, for the glorious cause. It’s also owing to well-combined operations of political and social organizations in Vietsovpetro for the common targets. On this occasion, I would like to express my sincere gratitude to all the collectives and individuals for their contributions to Vietsovpetro’s trademark.

Vietsovpetro’s achievements owe much to the righteous, sagacious and unceasing leadership of different generations of governments and states of Vietnam and the former Soviet Union - now Russian Federation, of different ministries, of PetroVietnam and Zarubejneft, leaders of the former Vungtau-Condao special zone - now Baria-Vungtau province and Vungtau city, help and protection extended by Baria-Vungtau people, as well as cooperation & support from domestic and foreign companies. On behalf of Vietsovpetro, I would like to express our gratefulness towards all of them for their attention and confidence in our successes, which strongly supported our collective to thrive forwards today’s great achievements.

It’s Vietsovpetro’s tasks during the coming years to
- insure safe production of White Tiger and Dragon oilfields with enhanced oil recovery, optimizing exploitation of subsoil resources with economic efficiency and good protection of ecological environment, in spite of the old-aged offshore equipment and facilities;
- expand operations to other blocks in Vietnam, Russian Federation and other countries, for the purpose of increasing hydrocarbon reserves;
- strengthen service capacity.

In short, it’s now the most significant target for the joint venture to assure its stable operation and development despite all the challenges, particularly after the year 2010.

Vietsovpetro is committed to thrive forwards, reinforce its solidarity, and try best efforts to fulfill difficult and glorious duties, actively contribute into national economic development and strengthen the traditional friendship and cooperation between Vietnam and Russian Federation.

We’re confident that under lucid leadership of central and local management, with effective assistance and cooperation of our partners, Vietsovpetro is determined to complete its commitments, deserving its noble appellation “Labor Hero”, and the leaders’ confidence in J/V Vietsovpetro.

105 Lê Lợi, Phường Thắng Nhì, Thành phố Vũng Tàu, Tỉnh Bà Rịa-Vũng Tàu, Việt Nam
Điện thoại: +84.64.3839 871Fax: +84.64.3839857