The success of Vietsovpetro caused a wave of interest among the world’s lea +-ding oil companies in the Vietnamese shelf

Deputy General Director for Production of JSC Zarubezhneft

E. P.: What significant events determined the further development of JV Vietsovpetro?
О. V. Akimov: Discovery of huge oil reserves in fractured and weathered granite rocks of the basement in 1987, which marked the beginning of an intensive growth in production and production achievements of the JV.
Moreover, proceeding from the interests of both countries and the development potential of the JV Vietsovpetro, on December 27, 2010 in Hanoi, the Government of the Russian Federation and the SRV Government signed an agreement on further cooperation in the field of geological exploration and production of oil and gas on the continental shelf of Vietnam for a period of 20 years, until 2030.
The high achievements of Vietsovpetro allowed to transfer the positive experience of interaction between Zarubezhneft and Petrovietnam to the territory of Russia – in 2008, a “mirror” joint venture Rusvietpetro was created to develop deposits in Russia.
By the way, it was the successes of Vietsovpetro that caused a sharp increase in the interest of the world’s leading oil companies in the Vietnamese shelf.

E.P.: What does the joint venture is today?
О. V. Akimov:
Today JV Vietsovpetro is the flagship of economic cooperation between the Russian Federation and the Socialist Republic of Vietnam, which accounts for about 20% of Vietnam’s national oil production. Due to the efforts of Russian and Vietnamese oil workers, the country, along with Indonesia, Malaysia and Brunei, is one of the four largest oil-producing countries in Southeast Asia.
The cumulative production of the enterprise today is more than 240 mln t of oil.
For the development of the White Tiger, Dragon, White Bear and White Hare deposits, 13 fixed offshore platforms, 26 wellhead platforms, two oil treatment process platforms, three compressor stations and two reservoir pressure maintenance platforms were built in the sea.
The unified low-pressure gas gathering system ensures the normal functioning of the entire technological process for collecting and transporting gas to the shore, preparing gas and using it for the gas-lift method of oil production at the JV Vietsovpetro deposits, and also allows to use up to 95% of the produced gas.
JV Vietsovpetro has created one of the best onshore bases in Southeast Asia for the construction and installation of offshore technological platforms for drilling wells and oil and gas production. The company has five jack-up floating drilling rigs, more than 20 fleet units, including crane-assembly, fire-fighting, diving and transport-tug vessels, three single buoy mooring units.
The created production and technological capacities not only meet the needs of the joint venture, but also allow Vietsovpetro to provide services to foreign partners operating in Vietnam.

E. P.: What are the key objectives of the joint venture for the near future?
О. V. Akimov:
Implementation of measures to level the rate of decline in production at the JV deposits is the main task for the near future.To compensate for the declining production, it is planned to carry out 67 geological and technical measures, including drilling and commissioning of wells at the existing structures of the White Tiger and Dragon deposits, drilling side-tracks to involve the residual reserves of the White Tiger, Dragon, White Bear.
As part of the work with the base stock, it is planned to continue the implementation of electric centrifugal pumps (ESP), which will allow in the future to reduce the consumption of gas-lift gas and increase the flow rate of existing wells. Drilling of a new reservoir of the White Tiger deposit (BK-21) is ongoing.
In the field of capital construction, it is planned to install and build two wellhead platforms (BK-18A and BK-19) to be commissioned in the IV quarter of 2021.
For 2021, the plan for oil and condensate production by JV Vietsovpetro in 2021 in the amount of 2,865 th t and an additional task in the amount of 150 th t were approved. The plan for natural gas production in the north-eastern region of the Dragon deposit has been approved in the amount of 76.6 mln cub. m.
The production program of the joint venture also includes measures aimed at obtaining additional oil production and reducing the rate of decline in base production, with the achievement of output production at the level of 7,950-8,400 t per day.
Herewith, under the influence of the current macroeconomic environment, comprehensive optimisation measures are being performed in order to increase operational and investment efficiency – improving the organisational structure, optimizing the drilling schedule, minimizing reserves by type of expense, which did not significantly affect the long-term level of oil production, improving the regulatory framework in terms of prices, consumption rates, etc.

E. P.: In your opinion, what are the Vietsovpetro’s prospects?
О. V. Akimov: The development prospects of JV Vietsovpetro in the near future are associated with a set of measures aimed at replenishing the resource base and maintaining production at a level that ensures profitability.For this, it is necessary to continue active work on the search for new structures, the implementation of modern technologies to increase oil recovery at the facilities of block 09-1, including in unprofitable (marginal) areas, the economic efficiency of development of which using traditional technologies is at the break-even limit.
Against the background of falling production and the release of production capacities and human resources, JV Vietsovpetro is increasing the volume of services provided to third-party organisations. These are drilling of exploration and production wells, construction of offshore facilities, deposit development and much more.
A successful pricing policy in terms of the services provided, as well as the uniqueness of production facilities and a high professional level of personnel training will allow the joint venture to increase its revenue from this type of activity from USD 170 mln in 2020 to USD 220 mln by 2030.
Herewith, considering the experience in the implementation of offshore projects in the SRV and the presence of the Vietsovpetro joint venture, which has the necessary production capacities, Zarubezhneft will focus on participation in offshore wind generation projects as a priority.
Thus, at present, Zarubezhneft and JV Vietsovpetro with DEME Offshore BE NV and DEME CONCESSIONS WIND NV are planning a joint project for the construction of an offshore wind farm Vinh Phong in Vietnam with a capacity of 1 GW and strategic cooperation in offshore wind power.