Petrovietnam, SOCAR agree cooperation in oil exploration and production
BAKU. May 12 (Interfax) - Vietnam's state oil and gas company Petrovietnam plans to expand cooperation with the State Oil Company of Azerbaijan (SOCAR) in oil exploration and production, Petrovietnam said in a statement.
The company said a ceremony was held during the state visit of General Secretary of the Central Committee of the Communist Party of Vietnam To Lam to Azerbaijan on May 7 to exchange previously signed documents on cooperation between the two countries.
"Among the signed documents are agreements in the energy sector between Petrovietnam and its subsidiaries with the Azerbaijani side. Petrovietnam and the Azerbaijan Ministry of Economy exchanged a memorandum on oil and gas exploration and production [with SOCAR], technical services and education sectors," it said.
In addition, Binh Son Petrochemical Refinery JSC (BSR) - an affiliate of Petrovietnam - and the Azerbaijan Ministry of Economy exchanged a Memorandum regarding long-term crude oil supply for Dung Quat Oil Refinery, involving BSR, Petrovietnam Oil JSC (PVOil), and SOCAR Trading Singapore.
"Since 2009, PVOil and BSR - two of Petrovietnam's affiliates - have signed multiple agreements and contracts with SOCAR Trading SA - a subsidiary of SOCAR - on Azeri crude oil supply for Dung Quat Oil Refinery. Starting from 2010 till late January, 2025, SOCAR Trading Singapore (a branch of SOCAR Trading SA located in Singapore) has supplied 35 lots of Azeri oil with the aggregate amount of approximately 31.7 million barrels, which is equivalent to about 4.34 million tonnes, valued at around $2.55 billion for Dung Quat Oil Refinery," it said.
Petrovietnam also said cooperation with Azerbaijan would extend to education.
"Within the education sector, since 2010, Petrovietnam has signed long-term agreements with the Scientific-Research Institute of Oil, Gas Geotechnology and Chemistry of Oil, established under the Azerbaijan National Oil Academy. The two parties have cooperatively arranged 27 education schemes for technical specialists of Petrovietnam working in Azerbaijan and Vietnam. It is expected that in 2025, the two sides will organize a specialized technical training program on drilling technology for Petrovietnam personnel in Vietnam," the company said.
Vietnamese media reported that on May 7, the Petrovietnam delegation also held a working meeting with the management of SOCAR, where they discussed prospects for further cooperation.
"The parties paid special attention to issues of long-term oil supplies to the Dung Quat refinery, cooperation in petrochemicals, joint research and training. Petrovietnam Vice President Le Manh Cuong expressed the hope that Petrovietnam and SOCAR would continue to coordinate issues and potential areas of cooperation, and would soon create a joint working group to draft specific steps to implement the agreements reached," the report said.
Azerbaijan's State Customs Committee said Azerbaijan sold 607,600 tonnes of oil to Vietnam for $491.3 million in 2022, then 554,400 tonnes for $345.5 million in 2023 and 138,500 tonnes for $77.9 million in 2024.