PETROVIETNAM

A. INTRODUCTION OF PETROVIETNAM

PETROVIETNAM
PETROVIETNAM - NATIONAL OIL CORPORATION OF VIETNAM Operating in all petroleum sector: Upstream and Downstream Exploration started in early 1960s in Red River Delta, Song Hong Basin, (Onland Northern Vietnam) under the assistance of Soviet Union KEY MILESTONES Sept. 1975: 1981: 1986: Established Vietnam Oil and Gas General Department (laterly called Petrovietnam). First Gas Production in Hanoi Trough, Red River Delta (marginal field) First Oil Production in White Tiger Oil Field (Vietsovpetro)

PETROVIETNAM

1989:

First PSCs in Vietnam with International Oil Companies

1999:
2002: 2003:

First Participation in overseas E&P (Malaysia)

First Commercial Gas Production from PSC (BPs Gas Fields). Established Gas Industry in Vietnam. First Operatorship in overseas E&P (Algeria)

2005:
2006:

Oil Discoveries in overseas (Algeria & Malaysia)

First Oil from overseas (Cendor Oil Field, Malaysia)

PETROVIETNAM
COUNTRY OF VIETNAM
Area: 330,000 sq.km land and 1 million sq.km continental shelf Exclusive Economic Zone (EEZ) Designated in 100 blocks*5000 km2 Population: 84 million (2005) GDP: 45,61 billion USD (2005) GDP Grow rate: 7.5% per year Export Products: Crude oil, coal, rice, coffee, aqua products, rubber, nuts, garments, shoes Labor forces (persons): 40,500,000 Main cities: Hanoi (Capital), Ho Chi Minh City Commercial hub, Hai Phong Northern port city, Danang Central port city, Can Tho Southern port city.

PETROVIETNAM
HYDROCARBON POTENTIAL OF VIETNAM
Vietnam: 3rd largest oil producer in SE

Asia
Potential oil resouces: 8.5 billion barrels Potential gas resources: 100 Tcf Discovered Oil Reserves: 4 BBO Discovered Gas Reserves: 23 TCF Oil Production: 430.000 BOPD Gas production: 600 MMSCFD Cumulative production: > 200 MM metric tons of crude oil & > 20 billion m3 of gas.

PETROVIETNAM
ESTIMATED HYDROCARBON RESERVES (million metric tons of oil equivalent)

discovered

hypothetical

PETROVIETNAM

PETROVIETNAM

PETROVIETNAM DOMESTIC & OVERSEAS E&P

PETROVIETNAM
DOMESTIC E&P
Since 1988 to 2005 50 contracts executed 26 contracts in force Over 7 billion USD invested

Million USD
1000

TOTAL INVESTMENT IN PETROLEUM EXPLORATION AND PRODUCTION

910

900 800

705
700 600

630 490 520 420 350 305 200 206

500

397
400 300 200

105
100

130

101

45 4

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

PETROVIETNAM

PETROVIETNAM
PRODUCING FIELDS & DISCOVERIES
Song Hong: TienHai C Cuu Long: Bach Ho, Rong Rang Dong Hong Ngoc (Ruby) Su Tu Den (Black Lion) Under development: Su Tu Vang, Su Tu Trang, Su Tu Nau NCS : Dai Hung (Big Bear) , Lan Tay Lan Do Under development: Rong Doi, Rong Doi Tay, Hai Thach.. Malai Thochu: BungaRaya,Kekwa,Cai Nuoc Under development: Ac Quy, Ca Voi Xanh, Bunga Orkid, Pakma

PETROVIETNAM
OVERSEAS E & P
Block 433a&416b, Algeria, 40% Amara Oil Field Iraq 100% 3 Blocks in Tamtsag, Mongolia, 5%/block

Block PM304 Malaysia, 15%

Block SK305, Exploration (05 projects) Development (02 projects) Block NEM 1 Indonesia, 20% Block NEM 2 Indonesia, 20% Malaysia, 30%

PETROVIETNAM
CURRENT OVERSEAS E & P
No
1 2 3

Blocks 433a&416b SK 305 PM 304

Type of Contract
PSC PSC PSC

Country
Onshore Algeria Offhore Malaysia Offhore Malaysia

Operator
PIDC PCPPOC Petrofac

Part. Interest of PIDC (%)

40 % 30 % 15%

Status
Exploration & Appraisal Exploration Development

4 5
6 7

NEM I NEM II
Tamtsag Amara

PSC PSC
PSC SC

Offhore Indonesia Offhore Indonesia

Onshore Mongolia Onshore Iraq

KNOC KNOC
Datamo PIDC

20% 20%
5% 100%

Exploration Exploration
Exploration & Appraisal Development

PETROVIETNAM Amara Oil Field, Iraq

Contract Signing : 3/2002

Type of Contract : Buyback Operator: PIDC (100%) 1,500 MMBO in place (#560 MMBO recoverable)

Intended Plateau : 80,000 BOPD Currently suspended due to political instabilisation.

PETROVIETNAM Blocks 433a & 416b, Algeria

Acreage: Desert, 6,472 sq.km, Sahara
L 433a & 416b

Operator: PIDC (40%) Works already conducted: Acquired 312 km of 2D seismic. Drilled 03 commitment wells.

02 discoveries made in MOM and Bir Seba prospects. Phase I expired by July 1st 2006 Estimated Phase II Expenditure: USD 450 million, (PIDC: USD 243 million) Discovered Oil in place: 2-3 BBO Hypothetical Oil in place: 1-2 BBO
EL OUE TOU D GGO URT

PETROVIETNAM Oil Discovery in Bir Seba (December 2005)

PETROVIETNAM
TWO PROJECTS IN MALAYSIA
98 100 102 104 106
VIETNAM

108

110

112

114

116

118
PALAWAN

120

9
(PHILIPPINES) THAILAND Malaysia / Thailand Joint Development Area
Pulau Bugsuk

PM3
Commercial Arrangement Area
Pulau

Pulau Balabac

Balambangan Pulau Banggi

7
PM301 Pulau Langkawi

H PM302 PM311 K G PM303 PM313 PM306 PM320 Pulau Pinang PM304 PM309 PM312 F F A B B SK301 PM321 PM307 PM305 SK3 SK302
Pulau Natuna

SB303

SB304 Pulau Malawali Sulu Sea

Pulau Jambongan

SB302

SB330 SB305

C D E M

L SB301

PM304
5

South China Sea

SABAH
SB331 J Pulau Labuan SB332
Pulau Timbun Mata Pulau Sibutu Pulau Tawitawi

SK312 SK 307 SK308 SK310 SK306 SK333

Pulau Sebatik

PENINSULAR MALAYSIA

SB306 SK311

SK305
3

PM308 PM322
Kepulauan Anambas

SK 305
SK303
Pulau Subi Besar Pulau Djemadja

SK334 SK5 SK305 SK331 SK332

Pulau Tioman

SK304

SARAWAK
SUMATRA SINGAPORE KALIMANTAN

Celebes Sea

200 Km

98

100

102

104

106

108

110

112

114

116

118

120

PETROVIETNAM Cendor Oil Field Block PM 304, Peninsular Malaysia

Petrovietnam: 15% Operator: PETROFAC Recoverable reserves: 35 MMBO First Oil: QIII/2006, 12,000 BOPD

PETROVIETNAM Block SK 305, Malaysia

Vietnam, Malaysia and Indonesia

Tripartite Cooperation
Operator: PCPP JOC Petrovietnam: 30% Oil Discovery made in Dana

prospect (well Dana-1X) December

2005 (DST result: 3.100 BOPD)

PETROVIETNAM Block North East Madura I (NEM I) - Indonesia

Offshore East Java Island, Indonesia.

Petrovietnam: 20%
Operator: KNOC First exploration well without discovery

PETROVIETNAM Block North East Madura II (NEM II) , Indonesia

Offshore East Java Island, Indonesia.

Petrovietnam: 20%
Operator: KNOC

PETROVIETNAM Blocks 19, 21, 22 - Tamtsag, Mongolia

Petrovietnam: 5% (carried until Commercial Declaration)

Operator: Datamo (Daqing, China) Exploration and extensive appraisal toward Commerciality.
Oil Production Facilities

Pilot production in Block 19: 350 BOPD

PETROVIETNAM
TOTALLY TARGETED INCREMENTAL RESERVES 20 YEARS (2006-2025)

Domestic: Overseas:

540 650 185 205

TOTAL:

725 855

(million metric tons oil equivalent)

PETROVIETNAM
OVERSEAS REGIONS - EXPLORATION FOCUS
Continued exploration efforts in Algeria, Malaysia, Indonesia

Prioritised new projects in 5 core regions:

No. 1. 2. 3.

Regions Middle East Africa South East Asia Russia and other countries in Central Asia Latin America & South America

Countries Iran, Iraq, Arab Saudi, Yemen Libya, Nigeria, Angola, Sudan Malaysia and Indonesia Russia, Azerbaijan, Uzbekistan, Turkmenistan, Kazakhstan. Mexico, Venezuela, Brazil

4.

5.

PETROVIETNAM ESTIMATED EXPLORATION EXPENDITURES DOMESTIC 2006-2010: 2011-2015: 2016-2025: TOTAL OVERSEAS 2006-2010: 2011-2015: 2016-2025: TOTAL

2,730 3,310 2,310 2,920 4,050 4,800 9,090 11,030

MM US$ MM US$ MM US$ MM US$

470 - 600 900 1,300 1,700 2,100 3,070 4,000

MM US$ MM US$ MM US$ MM US$

PETROVIETNAM

PETROVIETNAM PRODUCTION PERSPECTIVE

PETROVIETNAM
TOTALLY FORECAST PRODUCTION 2006-2025
D B O K H A I T H C D U K H G IA I O N 2 0 0 5 -2 0 2 5
40 36
D u k h , tr i u t n (q u y i )

YTF Gas (domestic)

40

K h m m i

36 32

Disovered Gas (domestic) Oil from overseas YTF Oil (domestic) Enhanced Oil Recovery (demestic) Discovered Oil (domestic)

32 28 24 20 16 12 8 4 0

K h pht hin

28 24

D u n c ngoi

20 16 12 8

D u m m i D u pht hin
G ia tng thu hi du

4 0

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

PETROVIETNAM

PETROVIETNAM
GAS INDUSTRY AND DOWNSTREAM

PETROVIETNAM Gas Utilisation

To make full use of gas potential, Petrovietnam in progress of actively developing

gas utilisation projects.

PETROVIETNAM Petrovietnam Gas Projects

Bach Ho Nam Con Son South West Gas

PETROVIETNAM
Bach Ho (White Tiger) Gas Utilisation Project

Offshore Compression
Transmission Pipeline Gas Processing Plant-Dinh Co Distribution Pipelines LPG Storage & Jetties-Thi Vai Length: 140 km
CAPACITY: Associated Gas: 2 BCM/year

Diameter: 16 inch

Dry Gas: 1.5 BCM/year

LPG: 300,000 T/year Condensate: 150,000 T/year

PETROVIETNAM
Nam Con Son Gas Utilisation Project

Capacity: 7 BCM/y Phase one: 2002 Gas: 2,7 BCM/y Cond.: 110,000 T/y Length: 370 km Diameter: 26 inch (the longest 2 phase [gas+liquid] pipeline)

To Utilize Natural Gas from Nam Con Son Basin.

PETROVIETNAM
Phu My - Ho Chi Minh Gas Pipeline

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

To deliver gas to the HCM City area.

PETROVIETNAM
Low Pressure Distribution Network

Supply gas to the industrial zones along the trunk-pipeline to HCM City. First network in 2003 Length: 15 km

Capacity: 1 billion m3/year

PETROVIETNAM
SOUTHWEST GAS PLAN AND REGIONAL LINK

Southwest Gas Master Plan and Regional Link

Two pipelines systems: PM3 CAA - Ca Mau , Block B O Mon. Block PM3 CAA: 2.5 BCM/year (60 BCM reserve)

Block 46,50,51:
Ca Mau Complex: Power Plant:

2.0 BCM/year
Total investment ~ 1.44 billion USD 720 MW

PM3 CAA -> Ca Mau 289Km offshore +43 Km Onshore, 18 diameter

Fertilizer Plant:
Block B, 48/95, 52/97 :

800,000 tons/year
2-5 BCM/year (160 BCM reserve)

Block B O Mon pipeline 235km offshore+195km onshore, 26 dia. Gas transported to O Mon- Tra Noc Power Plants .

C A M B O D IA
12 24 11 16 10

PETROVIETNAM
09 26 25 08

CAMBODIA CLAIM

B5 AMOCO

DEVELOPMENT PLAN FOR GAS in SOUTH vietnam

CL AI M

B7 BRITISH GAS

TH AI

LA ND

B5/27 RODS B6 AMOCO

P HNO MP E NH

V IE T N A M
Ph m area 2005: 4215 MW
O omon MON

O6 WOODSIDE O5 WOODSIDE

Max 1440 MW
Hon dat

B8 BRITISH GAS

500KV transmission line available HO CHI MINH

100 km Phu 30 my DINH inch
15-1 15-2

01 capacity CARIDALI 2 bcm/year

128

CARIGALI
129

8/32 AIPO

B9A BRITISH GAS O3

O4 IDEMITSU

Max 1440MW 71 BCm

282 km
41

B10

Block B,52/97

TRA NOC 100+5 km 105+5 km Max 3000mw 125 km AN MINH SOC TRANG

46 km
JVPC

CO
16-1 16-1

CARIG CARIDALI
130

02

O2 B11 O1

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

IA OD MB AM CA TN E I V

60 km

107 km 16 inch
17-1 ENTERPRISE

09-2 PETRO VIETSOVPATRO

26 inch

03

48-95 42 43

270 km

23 km

145+5 km 60 km
25

17-2

131

B12 B13 UNOCAL

SONG DOC

365 km
09-3 18 10

04-1

04-2

235+43 km 289+43 18 km inch 37

24 inch
50/96

CA MAU

complex
31 26 power Max 2160 MW fertilizer. 800.000 t/year 32 27

B12/27 B14 B15

BLOCK B UNOCAL 44

capacity 6-7 bcm/year

19

26 inch
04-3 05-1

132

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

P TE PT /U CA NO L

50 FINA

133 CONOCO

B12/38 TEXACO

51 FINA

51/96

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

45 38 33

20 28

11-2 PEDCO

05-3 AEDC

05-2 BP

B13/38 PTTEP B17 CPOC B12/32 TEXACO CPOC C19 PM 5 A18 CTOC PM 302 CARIGALI 46 FINA PM 3 LUNDIN 40

134 CONOCO

39

34

21

12 CANADIAN PETROLEUM

06

06-2 11-2
BP

PM3_CAA 60 BCM 2.5 BCM/year 2005 35

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

29 22 13

07

Existing pipeline

PM 8 ESSO

VIE TN AM CLA IM

36

Power plant under operation (FS made) 23

Power plant FS being studied Fertilizer plant under construction (FS

Pipeline under construction (FS made) Pipeline under FS

PETROVIETNAM downstream

Refining Petrochemistry Distributing and trading petroleum products

PETROVIETNAM
Downstream Activities Map
Nghi son Refinery & Petrochemical Complex (2015)

Dung quat Refinery (2009) Phu my Fertilizer Project (2004)

Camau PowerFertilizer Complex (2010)

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

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

PETROVIETNAM
DOWNSTREAM ACTIVITIES
PROJECTS UNDER CONSTRUCTION

Refinery No. 1 - Dung Quat Capacity: 6.5 million tons/year Feedstock: Bach Ho Products: LPG, Unlead Gas, Jet A1, Diesel, FO, Kerosene, 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, BCC, BOT...) Pre-FS approved by Government FS being made (to be submitted to Government in Dec. 2003 for approval) in 2015

PETROVIETNAM
DOWNSTREAM ACTIVITIES
ONGOING PROJECTS

Bitumen Project Location: Capacity:

Feedstock: Products: Investment:

to be decided 0.2 million tons/year for the first stage (bitumen only), can be increased up to 1 million tons/year for other products in further stages. imported Heavy Crude Oil or atmospheric residue from refinery Bitumen and by-products as DO, FO... FS being made, open to investors with Joint Venture.

Ca Mau Fertilizer Location: Capacity: Capital: Operation: Present status:

Ca Mau Complex 800,000 ton/year (Phase 1); 2,000,000 ton/year (Phase 2) 700 million $US, FS approved by 2008 EPC contract sumitted for Government approval

PETROVIETNAM PETROVIETNAM - ROAD TO THE FUTURE

An international industrial - commercial - financial insurance group

Expanding exploration and development activities throughout the country

Developing infrastructure - gas market, gas and downstream projects Attracting foreign investments Developing technological and managerial capability for fast development of industry

Expanding international energy-related business