Rosneft Vietnam B.V. has started drillling of LD-3P (Lan Do field) production well as part of Block 06.1 development. Rosneft acts as an operator of this project which proves high level of its competencies in implementation of complex offshore drilling programs that are technically challenging.

Target depth of the well is about 1200 m along the well bore, sea depth at the drilling site is around 160 meters. As estimated Lan Do field has initial natural gas reserves of 23 billion cubic meters. Underwater infrastructure objects will be built and connected to operating offshore objects of Block 06.1 (Lan Tay platform) in order to develop additional reserves of the field. Processed gas and natural gas liquid are delivered from the platform to the shore by the two-phase Nam Con Son pipeline that is 370 km long. It is the longest two-phase pipeline in South East Asia. Due to the two-phase technology gas and gas condensate are delivered to the onshore processing facility simultaneously.

Apart from that during 2018 Rosneft is also planning to perform sidetracking of previously drilled PLD-1P exploration well on Phong Lan Dai field (Wild Orchid) which is also located within Block 06.1. Target depth of the well is 1300 meters. As a result the well will be reclassified as a production well.

Wild Orchid field was discovered during drilling campaign of 2016 when Rosneft was engaged as an operator of an international offshore drilling project for the first time. The field revealed commercial gas reserves of 3,4 billion cubic meters.

Offshore infrastructure objects are being constructed on Lan Tay platform in order to deliver gas and natural gas liquids from the Wild Orhid field.

Drilling on Lan Do and Phong Lan Dai will be carried out using Japanese drilling equipment Hakuryu-5 made by Japanese company Japan Drilling Co., Ltd (JDC).

Block 06.1 production wells will be connected to existing infrastructure objects which will provide synergy between two projects, help to speed up wells commissioning and maximize effectiveness of Block 06.1 fields development in Vietnam.

Under Vietnam offshore projects Rosneft implements the most advanced technologies available on the market.

In 2017 about 9% of Vietnam energy needs were covered by gas produced by the Company.

About Rosneft in Vietnam

At the moment Rosneft is engaged in gas and condensate production projects on two offshore Vietnam blocks and is also a participant of The Nam Con Son Pipeline project:

- Block 06.1: Rosneft Vietnam B.V. owns 35% share in the projects and is the Project operator. Project is implemented on terms of Production Sharing Agreement (PSA). Three gas condensate fields - Lan Tai, Lan Do and PLD (Wild Orchid) are located on the Block. The field are 370 km offshore in Nam Con Son basin. Sea depth in the areas reaches 190 meters. Initial gas reserves of the fields are about 69 billion cubic meters.

- Block 05.3/11: Rosneft Vietnam B.V. holds 100% share in the projects and is the Project operator. Licensed site is located in the region with confirmed oil and gas potential and borders on currently developed fields of Block 06.1. The current estimate of the resources of Block 05.3/11 is about 28 billion m3 of gas and 17,5 million tons of gas condensate. First exploration well was drilled in June, 2016, drilling of the second one has started in March, 2018.

Rosneft Pipeline B.V. holds 32,67% share in Nam Con Son Pipeline project under which gas and gas condensate from Nam Con Son basin offshore blocks is delivered to the Onshore processing facility. After that the products are delivered to a complex of gas turbine power stations to produce electricity. Commercial reserves discovery on Block 05.3/11 will make it possible to use the project infrastructure for production delivery to the end-user.

In August, 2017 Rosneft Vietnam B.V. had reached an important milestone in its operations - 15 years of accident-free marine activities. Not a single case of staff disability was registered during this period. This is one of the best results in the industry.

In the year 2016 Vietnam Ministry of Industry and trade had honored Rosneft Vietnam B.V. with a Medal of Merit for successful operational and exploration activities in the country. The significant contribution to Vietnam oil industry was honored by a Certificate of Merit from PetroVietnam company in 2017.

About Rosneft

Rosneft is the leader of Russia’s petroleum industry and the world’s largest publicly traded petroleum company. Company’s main activities include prospecting and exploration of hydrocarbon deposits, oil, gas and gas-condensate production, upstream offshore projects, processing, as well as oil, gas, and product marketing in Russia and abroad. The Company is included in the list of strategic companies and organizations of Russia. Company’s largest shareholder (69.50% of the equity) is ROSNEFTEGAZ OJSC, fully owned by the Russian Government, while BP holds 19.75% of shares, one share belongs to the state represented by Federal Agency for State Property Management, whereas the remaining shares are free floating.