Petrovietnam strengthens cooperation with Ministry of Mines and Energy of Cambodia

From 06th to 07th September 2016, a working group led by Petrovietnam President & CEO Nguyen Vu Truong Son visited and worked with the Ministry of Mines and Energy (MME), Kingdom of Cambodia.

Joining the working group were Heads of Petroleum Exploration, International Relations Divisions and Administration Office of Petrovietnam; Petrovietnam subsidiaries; Dr. Hoang Ngoc Dang – Chairman of the Board of Directors of PVEP, Dr. Cu Minh Hoang – Director of PVEP Overseas, Mr. Vu Hai Binh – Director of PVOil Cambodia, the leaders and officials of PVEP Overseas in Cambodia.

In the morning of 07^th September 2016, at MME headquarters, with the attendance of Vietnam Commercial Counsellor in the Kingdom of Cambodia, Mr. Nguyen Bao and the working group had an important meeting with MME’s leaders to strengthen the cooperation and promote the investment activities between the two sides.  

The meeting of the working group at MME’s head quarters

Speaking at the meeting, Petrovietnam President & CEO Nguyen Vu Truong Son reported to Minister. Suy Sem about the Group’s activities carried out in Cambodia in the recent years in the fields of exploration, processing and distribution of petroleum products as well as some achievements. In addition to asking for MME’s support towards Ca Mau Fertilizer Company to expand and develop its market, Mr. Nguyen Vu Truong Son also presented and analyzed the causes of the challenges facing two projects, i.e. Condensate Blending Facility (CBF) Project invested by PVOil in cooperation with Overseas Cambodia Investment Corporation (OCIC) under Canadia Cambodia Group, and the Petroleum Exploitation Project in Block XV, Mainland, Kingdom of Cambodia operated by PVEP. He expected that Minister. Suy Sem and relevant authorities of Cambodia would provide further support to Petrovietnam to overcome difficulties in order to continue its projects in the neighbouring country for mutual interests, development of the traditional cooperation and friendship between Vietnam and Cambodia.     

On his side, Minister Suy Sem showed his pleasure for the successful cooperation of Petrovietnam and MME through the activities of Petrovietnam subsidiaries in the recent years and highly appreciated the efforts of PVEP/PVEP Overseas in implementing the Petroleum Exploitation Project in Block XV, Mainland, Kingdom of Cambodia. The Minister also expressed his sharing to the difficulties facing the projects, especially the Petroleum Exploitation Project in Block XV and committed to find out any possible way to support the projects on the basis of PetroVietnam’s recommendation: Apply for extension of the time to prepare the Definitive Feasibility Study (DFS) Report for the Condensate Blending Facility Project (shortly called CBF) of PVOil Cambodia until June 2017; Ask for support in extending the contract or signing a new contract and adjusting the workload to be suitable with the petroleum potential of the Block.  

The working group taken photo with Minister. Suy Sem

Minister. Suy Sem highly evaluated the results of the visit and meeting of Mr. Nguyen Vu Truong Son and the working group in Cambodia. He also shared the difficulties with Petrovietnam in the context that the world’s oil price was getting many difficulties and promised to continue supporting the Group’s projects to early achieve expected outcomes. The Minister believed that the successful visit would increasingly promote better development of the relationship between Petrovietnam and MME in particular as well as the relationship between Vietnam and Cambodia in general in the coming time.

The visit and meeting of Mr. Nguyen Vu Truong Son and the working group confirmed Petrovietnam policy to  support the subsidiaries in the project implementation, regularly monitor to ensure the optimum investment efficiency of the overseas projects, reinforce the commercial promotion activities as well as to strengthen and develop the strategic partnership between Petrovietnam and MME, contribute to boosting the bilateral cooperation between Vietnam and Cambodia in the field of petroleum exploration and production.

About the Project in Block 15, Mainland, Kingdom of Cambodia:

- Petroleum agreement signed on 12/11/2009 (PVEP 100%).

- Project Operator: PVEP Overseas.

- Exploration Stage 1 (2009 – 2014):

+ Collect, process and analyze 6.176km from the high resolution aviation gravity;

+ Collect after explosion, process and analyze 607km of 2D seismic.

- Exploration Stage 2 (2014-2016): Drill 01 well (uncompleted). The project is in the Exploration Stage 2, ended on 12/5/2016.

Information about the Condensate Blending Facility Project:

- PVOil Cambodia Joint Venture was established in October 2014 on the basis of the investment cooperation between PV Oil Corporation (PV OIL) and Overseas Cambodia Investment Corporation (OCIC), under Canadia Cambodia Group.

- Head office of the Company: 26^th Floor, Canadia Tower, No. 315 Ang Duong Phnom Penh.

- Total investment of the project: around 40 million USD.

- Charter capital of PVOIL Cambodia: 10 million USD. The holding rate: PVOIL: 51% of the capital; OCIC: 49% of the capital. The Condensate material for CBF Project will be imported from Vietnam.

- Expected capacity of CBF project is around 220 ton/ year. Main finished products are Ron 92, DO and LPG. CBF is the first condensate blending project in Cambodia which has attracted special concerns from both Governments of Vietnam and Cambodia. On 24 June 2015, the Ministers’ Council of Cambodia signed the Notice No. 640/SCN-S permitting PVOIL Cambodia to make Definitive Feasibility Study (DFS) Report for CBF Project and submit to the Prime Minister for approval within 12 months from the signing date of such Notice.