Vietnams Olje j og g Gass sektor

Overview of Vietnam oil & gas group

board of directors
PRESIDENT & CEO AND VICE PRESIDENTS

subsidiaries and affiliates 20 divisions, 27 subsidiaries for all sectors

76

Overview of Vietnam oil & gas group

Exploration Division Commercial & Marketing Division Financial & Accounting g Division Personnel and Training Division Service Development Division Petroleum Production Division Inspection and Security Division International Cooperation Division Health - Safety - Environment Division Labor, Wages & Staff Policy Division Enterprise Reform&Development Division

PET TROVIE ETNAM M HEAD D QUA ARTER RS PRESID P DENT & CEO AND D VICE E PRESI IDENTS S

Petroleum Processing g Division Gas & Power Division Planning - Investment Division Internal Auditing Division Legal Division Construction Division Science - Technology Division Bid Evaluation Office Administration

77

Overview of Vietnam oil & gas group

PTSC SC PVEP PIDC PV Gas G PV Drilling PV Insurance PV Engineering PV Trans Co. PVFC Co. C RDCPP PETROSETCO DUNG QUAT REFINERY NGHI SON REFINERY Ph M Phu My F Fertilizer tili Mgt M t Board B d Ca Mau Gas-Power-Fertilizer Mgt Board Phu My HCMC Gas Pipeline Mgt Board Petrovietnam Buildings No.1&5 Mgt Board

P PETRO OVIET TNAM

VPI

sub bsidiar ries

PIC PETECHIM PVFC PVECC PVPDC DMC RDCPSE PVMTC Hanoi Petroleum Trading Center Mgt Board

78

Milestones

Petrovietnam is National Oil & Gas Company. Operating O ti i all in ll areas of f petroleum t l sector: t upstream, t midstream id t and d downstream. Exploration activities started in the early 1960s in the Song Hong delta, northern Vietnam. Sep 1975: Establishment of the Vietnam Oil and Gas General Department. Sep 1977: Establishment of the Vietnam Oil and Gas Company (PETROVIETNAM). April 1990: PETROVIETNAM was integrated in MHI. MHI Since April 1992: PETROVIETNAM was detached from MHI to be under direct control of Prime Minister. Since January 2007 PETROVIETNAM has been Multi-Businesses Group beyond Petroleum.
79

Main functions

Petroleum Exploration Exploration, Production Production, Processing Processing, Storage Storage, Transportation Transportation, Provision of Services; Import and Export of Petroleum Materials and Equipment, Crude Oil, Petroleum Products; Distributions Of Petroleum Products; Survey, Engineering, Consultancy, Construction, Maintenance, Exploitation of Petroleum and Civil Facilities; Real Estate Business; Finance Securities Finance, Securities, Banking Banking, Insurance; Training, Education, Manpower Provision; Hotel, Tourism, Office; Other Businesses permitted by Vietnams Laws and Regulations.

80

Vision
To become a Leading Integrated Oil & Gas Group in the region and in the world.
Mission Statement:

Business Entity. y Petroleum is core business. To develop p and add value to national resources. To ensure the energy security of the country. To contribute to GDP (>30%) ( )

81

Oil and Gas p potentials Major j Basins

Vietnam- 3rd largest g oil p producer in SE Asia: Major basins (7): Song Hong, Phu Khanh, Cuu Long, Nam Con Son, Malay- Tho Chu, Hoang g sa and Truong g Sa basins. Potential oil resources: 8.5 billion barrels Potential gas resources: 100 TCF Oil reserves: ~ 4 billion barrels Gas reserves: ~ 23 TCF Oil prod production ction : ~ 430 430.000 000 bod Gas production : 600 MM cfd production: >200Mt of crude oil Cumulative p & > 20 billion m3 of gas.

Source: Petrovietnam 82

Overview of f Vietnams blocks bl k and d operators

Blocks / Operators under PVEPs Management
190 000 N 23.0 0
HA G LAO CAI IANG TU YE N QUANG YEN BAI VIN H PHU SO N LA BAC CAO BANG

200 000

300 000

400 000

500 000

600 000

700 000

800 000

900 000

1000 000

1100 000

1200 000

1300 000

BLOCK
2500 000

OPERATOR JVPC THANGLONG JOC PETRONAS LAMSON JOC

REMARK

CHINA
LAN G SON

CAN

N 22.0 0

LAI CHAU

TH AI N GUY

EN

2400 000

15-2 15-2/01 01 & 02

BAC GIANG HA NOI CAP ITAL BAC NINH QUANG HA I HUN G DUO NG HA I YEN PHONG NAM HA HA NOI BAS IN NINH

N 21.0 0
HOA BINH

2300 000
106

N 20.0 0

THANH

HOA

102/91 103/91

107

L AOS
NGHE AN

2200 000

108 104 109

N 19.0 0

HAI NAM ISL AND

2100 000

HA TINH

105

110

N 18.0 0
QUANG BINH

2000 000
111

09-2 09-3 09 3 15-1 16-1 16-2 07 & 08 133 & 134 05.1b& 05.1c

HOANVU JOC VRJ CUULONG JOC HOANGLONG JOC CONOCO VAMEX CONOCO IDEMITSU KNOC PREMIER OIL PREMIER OIL BP TRUONGSON JOC CHEVRON

CUULONG BASIN

112

113

N 17.0 0
QUANG TRI TH UA THI EN HU E

1900 000
114 115

116

117

1800 000
118 QUANG NAM DA NANG

N 16.0 0

THAILAND

119

1700 000
120

N 15.0 0
KO N T UM

QUANG NG AI

121 BINH DI NH GI A LA I 122

1600 000

N 1 4.0 0

123 PHU YE N

1500 000

N 13.0 0

CAMBODIA
BINH PHUOC TAY NINH BINH DUONG HO CHI MI NH C ITY DONG THAP LONG TIEN GIANG VI NH LO NG 15-2 /95 16-1 16-2 25 31 18 26 50 44 37 32 27 B-16 51/96 51 46-1 46 40 35 29 22 39 34 45 38 33 28 21 12-W 20 11-2 19 17 09-1 AN LAM DONG

124

DAC LAC KHANH HOA 125

1400 000

N 1 2.0 0
NI NH THU AN

126

1300 000
127

N 1 1.0 0
AN GIA NG
PHU QUOC ISL AND

DONG NA I BA RIA VUNG TAU

BINH THUAN 1/97 01 128

1200 000

SOUTH CONSON BASIN

01 15-1 15-2 09-2 09-3 04-2 10 04-3 11-1 11-2 5-3 06-1 12-E 06/95 06-2 07 05-1C 05-3 04-1 2/97 03 02

129

N 1 0.0 0

B-10 B-11

47

41

KIEN GIA NG BA C LI EU CA MAU

CAN TH O

130

1100 000

11 2 11.2 12W

48

42

SOC TR A NG

131

N 9.0 0

B-12 B-13 B-14 55 B-15 54 48/95 B

49

43

132

1000 000

133 05-2 134

12E
900 000

N 8.0 0

135

06-1; 05-2 & 05-3

800 000

N 7.0 0

13 08

136

36

23 30 24

14

700 000

46/02 B & 48/95 & 52/97

N 6 .00

MALAY-THOCHU BASIN

100

200 Km

600 000
EXPLORATION DEPARTMENT

N 5 .00

83

E102.00

E103.00

E104.00

E105.00

E106.00

E107.00

E108.00

E109.00

E110.00

E111.00

E112.00

Oil ( (mmbbls) / Ga as (BCF)

150 200 250 300 350 400 100 50 0

Source: Petrovietnam
1989 1990
10 3 15 2 20 2 25 4 28 .5 18 30 2 4 8. 5

Oil & Gas production p od ction

84
1991 1992

Gas BCF

1993 1994 1995 1996 1997 1998 1999

74 10 0 54 56 11 0 24 31 .5 40 36 45

Oil MMbbls

Oil and gas production 1989-2004 and prediction to 2010

Year
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

67 75 81 89 95

12 2 15 6 21 8 27 0 28 0 30 0 10 2 11 0 11 8 12 1 12 7 32 0 34 0 35 0 37 0

Upstream Projects Current petroleum Contracts

From 1988 to 2007: 54 petroleum signed contracts 30 contracts are in force 8 billion USD of investment

Source: Petrovietnam 85

Production fields
Song Hong: Hong: TienHai C Cuu Long Basin: Basin: Bach Ho, Rong Rang Dong Hong Ngoc (Ruby) Su Tu Den (Black Lion) On development: STV, CNV NCS B Basin Basin: i : Dai Hung, Lan Tay , Rong Doi. On development: HT, Moc Tinh. MalayMalay -Thochu Basin Basin: : Bunga Raya, Raya Kekwa Kekwa, Cai nuoc nuoc, Cendor On development: TL,AQ,CV
Source: Petrovietnam 86

New discoveries
Block 102 102-106: Thai Binh

Block 103 103-107: Bach Long g

Block 1515-1: Su Tu Nau

Block 15 15-2/04: Hai Su Trang

Block 12: Chim Sao

Source: Petrovietnam 87

Cooperation in Oil & Gas Exploration

Bilateral Vietnam-China

Trilateral Vietnam-ChinaPhilippines

Bilateral Vietnam-Campuchia
Source: Petrovietnam 88

Overseas Projects
L 433a&416b, An-gi-ri, 40% A Amara Oil Fi Field ld Iraq 100% 3 Blocks in Tamtsag, Mongolia, 5% per Block

Venezuela, 49%

PM304 (Cendor Field), Malaysia, 15%

Expl. & Appr. (05) Dev. & Prod. (04) Block Majunga, Madagascar, 10% Block NEM 1 Indonesia, 20% Block NEM 2 Indonesia, 20%

Block SK305, Malaysia 30%

89

Upstream activities

Petroleum Contracts signed: 54 of which 30 are in force E&P activities: 300,000 km 2D, 30,000km2 3D, 200 exploration wells, e s, 70 hydrocarbon discoveries, 20 oil & gas fields (10 producing fields) Oil production: 400,000 bbl/day from 7 fields and 2 fields on development Gas production: 650mmcf/day from 5 fields and 2 fields on development Results R l of f E&P studies di and d new discoveries di i h have opened d many opportunities for future investment in upstream projects.

90

Gas projects p j

91 Sourc ce: Petrovietn nam

Bach Ho Gas Utilization Project

Offshore Compression T Transmission i i Pi Pipeline li Gas Processing PlantPlant-Dinh Co Distribution Pipelines LPG Storage & JettiesJetties-Thi Vai Length: 140 km Diameter: 16 inch
CAPACITY: Associated Gas: 2 BCM/year Dry Gas: 1.5 BCM/year LPG: 300,000 T/year
Source: Petrovietnam 92

Condensate: 150,000 T/year

Nam Con Son Gas Utilization Project

Capacity: 7 BCM/y Phase one: 2002 Gas: 2,7 BCM/y Cond.: 110,000 T/y Length: g 370 km Diameter: 26 inch

Source: Petrovietnam 93

Phu My HCMC Gas Pipeline

Capacity: 2 BCM/y Completed p in 2006 Length: 62 km Diameter: 22 inch Investment: 115 MM USD

Source: Petrovietnam 94

L Low Pressure P Distribution Di t ib ti Network N t k

Supply gas to the industrial zones along the trunktrunk -pipeline to HCM City. City . First network in 2003 Length: Length : 15 km Capacity: Capacity : 1 mm m3/year

Source: Petrovietnam 95

South West Gas Plan & Regional Link

Two pipelines systems: PM3PM3 Camau , Block BB Omon. Omon

Block PM3-CAA: Block 46,50,51:

2.5BCM/year (60 BCM reserve) 2.0 BCM/year Total investment ~ 1.44 billion USD

Ca Mau Complex: 720 MW Fertilizer Plan:

PM3-CAA-> Ca Mau Pipeline 289Km offshore +43 Km Onshore, 18 Power Plan: 800,000 tons/year 2-5BCM/year (160 BCM reserve)

Block B, 48/95, 52/97 :

Block B - Omon pipeline 235km offshore+195km onshore, 26suplies gas to Omon - Tranoc power plants .
96

Development p Plan for Gas in the South

T

O6 WOODSIDE O5 WOODSIDE

Max 1440 MW

Phu My area 2005: 4215 MW

Oomon MON TRA NOC

500KV transmission line available HO CHI MINH

100 km 30 inch

01 capacity CARIDALI 2 bcm/year

Hon dat
O4 IDEMITSU

Phu my

CARIGALI

15-1

Max 1440MW 71 BCm

100+5 km 105+5 km 125 km

DINH CO
16-1

46 km
15-2 JVPC 02 CARIDALI CARIG

2-3,7 BCM/year 2005-2006 opt 1 from 3 lines

IA OD M MB NA CA T E VI

Block B,52/97

Max 3000mw
SOC TRANG
16-1

41

282 km
60 km

AN MINH

107 km 16 inch
17-1 ENTERPRISE

26 inch
09-2 VIETSOVPATRO PETRO 03

48-95 42 43

270 km 235+43 km

23 km

60 km

145 5 k 145+5 km
25

17-2

SONG DOC CA MAU

09-3 UNOCAL 18 31 10

365 km 26 inch

04-1

04-2

24 inch
BLOCK B UNOCAL B14 B15
P E T T P L A C O N /U

289+43 km 18 inch
50/96 44 37

complex

power Max M 2160 MW fertilizer. 800.000 t/year

27

26

capacity 6-7 6 7 bcm/year b /

19

04-3 04 3 05-1

51 FINA

51/96

45

38

33 28

20

11-2 PEDCO

05-3 AEDC

05-2 BP

B13/38 PTTEP B17 CPOC B12/32 TEXACO CPOC C19 A18 CTOC PM 302 CARIGALI 46 FINA PM 3 LUNDIN 40

39

34

21

12 CANADIAN PETROLEUM

06

11-2 06-2 BP

PM3_CAA 60 BCM 2 5 BCM/year 2.5 2005 35

L.Ty, L. 58 bcm 2,1- 2,7 bcm/year 2002

29 22 13

07

Existing pipeline Pipeline under construction (FS made) Pipeline under FS 97

Power plant under operation (FS made) Power plant FS being studied Fertilizer plant under construction (FS made)

Sou urce: Petrovie etnam

BO 52 NG PT K O T TE BL P OC B16 K

50 FINA

32

block 46,50,51 10-15 bcm 0,8-1,5 bcm/year after 2010

Oil & Gas Demand

OIL AND GAS DEMAND IN VIETNAM 2001-2010

millions tones 18 16 14 12 10 8 6 4 2 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 0 2,000 6,000 8,000 millions cubic meters 10,000

4,000

Oil Demand (millions tones) Gas Demand (millions cubic meters)

Source: Petrovietnam

98

99

Refineries & Petrochemical Activities

Nghi Son Refining & Petrochemical Complex (7 MMTPA), 20102010-2015 Dung quat Refinery (65 MMTPA), 2009 LAB Project (30,000 TPA) PP Project (150 000TPA) 2009 (150,000TPA),

Ethylene Complex 20102010-2015 (400.000 PP TPA 350.000 PE TPA)

Southern Refinery (7(7-9 MMTPA) 2011MMTPA), 2011-2015

DOP Plant (30,000 TPA), 1997

PS Project (60,000 TPA) In operation Plant Project Under Construction Investment Preparation Project

Condensate Plant (270 (270,000 000 TPA), 2004 Camau GasGas-Power PowerFertilizer Complex (800 (800,000 000 TPA), 2010
100

Phu My Fertilizer Plant (740,000 TPA), 2004

PVC Plant (100,000 TPA) 2003 TPA),

Source: Petrovietnam

Phu My Fertilizer Plant

Location: Phu My, Vung Tau Capacity: urea 740.000 T/year, ammoniac 51.000T/year Capital:430 million $US, Operation: June 2004

Source: Petrovietnam 101

PVC Plant

Joint Venture (PV, Petronas, Tramatsuco) Location: Baria, Vung Tau Capacity: 100.000 tons/year Capital: 68.5 million $US Operation: January 2003

Source: Petrovietnam 102

Ongoing projects
Refinery No. 1 - Dung Quat Capacity: 6.5 million tons/year Feedstock: Bach Ho Products: LPG Unlead Gas LPG, Gas, Jet A1, A1 Diesel Diesel, FO FO, Kerosene Kerosene, PP PP. Capital: 2.5 billion $US (Petrovietnam 100% share) Status: Under construction Operation: In 2009 year

Refinery No. 2 - Nghi Son Capacity: Feedstock: Products: Capital: Status: Operation: 7 million tons/year Sweet/Sour Crude Oil ( 50/50) LPG, Unlead Gas (Octane Index > 90), Kerosene, Diesel, FO, Bitumen, Para-xylene (for Polyester),PP 3 3 5 billion $US (Open for foreign party JV 3-3.5 JV, BCC BCC, BOT BOT...) ) Pre-FS approved by Government FS being made (to be submitted to Government in Dec. 2003 for approval) in 2015

103

Ongoing projects
Bitumen Project Location: Capacity: Feedstock: Products: Investment: Ca Mau Fertilizer Location: Capacity: C it l Capital: Operation: Present status: Ca Mau Complex 800,000 ton/year (Phase 1); 2,000,000 ton/year (Phase 2) 700 million illi $US $US, FS approved d by 2008 EPC contract sumitted for Government approval To be decided 0 2 million tons/year for the first stage (bitumen only) 0.2 only), Up to 1 million tons/year for other products in further stages. Imported Heavy Crude Oil or atmospheric residue from refinery Bitumen and by by-products products as DO, DO FO... FO FS being made, open to investors with Joint Venture.

104

Projects Calling for Investment

Refinery R fi N No.3 3i in S South th A Area Dung Quat Complex
LAB Plant : PP Plant : 30,000 ton/year, 45 million USD, FS being made 150,000 tons/year; 170 million $US FS being made, in operation with Refinery No.1

Baria - Vung Tau complex

105

Ethylene Complex : Polyester Fiber Plant : PS Plant : Methanol Plant :

600,000 00 000 tons/year 900 million USD, FS being made 120,000 tons/year, 130 million USD FS being made 60,000 tons/year, 50 million USD FS being made y 350 million USD ( (in Baria, Vung g Tau) ) 660,000 tons/year, FS made with Lurgi Oil Chemie - Germany

R & D Centers

Science-Technology is a basic foundation for the firm development of the Petroleum Industry of Vietnam. Vietnam Petroleum Institute (VPI) Research and Development Center for Petroleum Processing (RDCPP) Research and Development Center for Safety and Environment (RDCSE) P Petroleum l Information I f i Center C (PVC)

106

CCOP
(Coordinating Committee for Geoscience Programmes in East and Southeast Asia)

"To facilitate and coordinate the implementation of applied geoscience

programs in East and Southeast Asia in order to contribute to economic development and an improved quality of life within the region".
To this end, CCOP promotes capacity building, technology transfer, exchange of information and institutional linkages for sustainable resource development, management of f geo-information, i f i geo-hazard h d mitigation ii i and d protection i of f the h environment. Member M b countries t i (Eleven): (El ) Cambodia, C b di China, Chi I d Indonesia, i Japan, J K Korea, M l i Malaysia, Papua New Guinea, Philippines, Singapore, Thailand and Vietnam. Cooperating C ti countries t i (Thirteen): (Thi t ) Australia, A t li Belgium, B l i C Canada, d Denmark, D k France, F Germany, Japan, The Netherlands, Norway, Russian Federation, Sweden, United g and United States of America. Kingdom
107

ASCOPE (ASEAN C Council il on P Petroleum t l )

On the 15th of October 1975, five founding countries (Indonesia, Malaysia, the Philippines Singapore, Philippines, Singapore and Thailand) signed the Declaration of Establishment and the Memorandum of Understanding of ASCOPE. Brunei Darussalam joined later in 1985. Vietnam became the seventh member of ASCOPE on November 5, 1996. Cambodia and Myanmar became ASCOPE members on 14 February, February 2001. 2001 The aims and purpose of ASCOPE: Promotion of active collaboration and mutual assistance in the development of

petroleum resources in the region through joint endeavors in the spirit of equality and partnership. Collaboration in the efficient utilization of petroleum. petroleum Providing mutual assistance in personnel training and the use of research facilities and services in all phases of the petroleum industry. Facilitating exchange of information. information Holding of Conferences and Seminars. Maintenance of close cooperation with existing international and regional organizations with similar aims and purposes.
108

Petrovietnam Road to Future

An international industrial commercial financial group. group Expanding exploration and production activities throughout the country and overseas. overseas Developing infrastructure gas market, gas and downstream projects. projects Attracting more foreign investment in parallel with PVNs increase of investment. investment Developing technological and managerial abilities to adapt to the development of the industry in both domestic and overseas business environments. Expanding international energy-related energy related businesses. businesses
109

Objectives
Develop domestic market for natural gas consumption 2010: 12-14 12 14 Billion m3 2010-2020: Construct and operate national pipeline system and d integrate i with ih regional pipeline system

Implementation plan
Participate in investment of 3 gas-utilized Industrial Zones:
South Western: 6-9 Billion m3 per annum South Eastern: 5 5-8 8 Billion m3 per annum Northern: 1-2 Billion m3 per annum

110

Objectives
Financial requirements: 2001-2010: 20 BUSD;
E&P 12 BUSD E&P: Gas transportation: 1.5 BUSD Petroleum processing: 2.5BUSD Production distribution: 3 BUSD Services: 1 BUSD

Implementation plan
Establish PetroVietnam internal E t bli h P t Vi t i t l fiscal system:
PetroVietnam finance company Petroleum investment and development bank PetroVietnam securities company PetroVietnam insurance company

2010-2020: 21.4 BUSD

Encourage foreign investment Establishing E&P fund from 20% crude oil sale revenue Diversify capital mobilization:
Issuing international and domestic petroleum bonds, participating in securities market

111

Opportunities pp and p potentials for Norwegian g Oil & Gas related companies

112

Waste W t management, t including i l di systems t f for treatment t t t of f hazardous h d and d toxic t i wastes Environmental protection technologies, including produced water treatment, abandonment & clean up pp procedures and technologies, g , and environmental practises in processing Oil spill combat equipment, including boats and facilities Enhanced Oil Recovery (EOR) technologies for declining oil fields (including CO2 injection) Deep water (more than 100m) drilling and production technologies, including drilling rigs (70-200m) Seismic surveys Gas utilisation alternatives (polypropylene and polyethylene production) Engineering and construction of production facilities Supply vessels Promotion support for investment related to upcoming licence rounds Training and education Oil Oil for Development Development: : Norway has decided to double the development aid within Oil and Gas related to Administrative Development Competence.

THANK YOU !!!

113