OREANDA-NEWS. On 29 December 2008 was announced, that Vungtau (North Vietnam) hosted XXXV council meeting of Joint venture “Vietsovpetro”. Russian side was represented by General Director of JSC “Zarubezhneft” – Nikolay Brunich, members of board of directors – deputy minister of Energy of Russian Federation Stanislav Svyatlicky, deputy director of Federal Agency for State Property Management Yury Medvedev, first deputy of “Vietsovpetro” Mikhail Sobolev.

Vietnamese fraction of the council was presented by: General Director of “Petrovietnam” Chan Ngoc Canh, members of board of directors – chief of economic development of Socialist Republic of Vietnam. Ngo Van Shang, Head of industrial bureau in Ministry of Planning and Investment Nguen Kuang Zung, department head of financial management in Ministry of finance Chan Huu Ten and the General Director of Joint venture “Vietsovpetro” Chan Le Dong.

Meeting also welcomed honorable guests represented by Extraordinary and Plenipotentiary consular of the Russian Federation in Socialistic Rupublic of Vietnam Vadim Serafimov, Consul General of Russian Federation in Hoshimin town Nikolay Ubushiev, vice-chairman of national committee in Baria-Vungtau province – Ho Van Nien. Meeting was also attended by senior experts of JSC “Zarubezhneft” Oil and Gas Company “Petrovietnam” and Joint Venture “Vietsovpetro”

Nikolay Brunich, General Director of JSC “Zarubezhneft” was elected as an honorary chairman of the XXXV meeting.

In the beginning of the meeting members of the summit noted that on 27th of October 2008, president of Socialistic Republic of Vietnam Nguen Min Chieta during his visit to Russian Federation signed intergovernmental agreement, which stated primary principles of mutual cooperation from 2010 in terms of joint venture “Vietsovpetro”, as well as entry treaty of “Petrovietnam” into newly formed joint venture “Russvietpetro” which will operate in Russian Federation.

Furthermore, delegates assessed production and commercial operations of “Vietsovpetro” for 11 month of 2008 annual. In particular, they noted that oil extraction as of 1 of December, 2008 reached 7068,7 thousands tonns (107,4% of projected production). Anticipated production of oil by the end of the annual was set at 7700, 00 thousands tonns. In order to maintain the pressure in reservoir company pumped over 13659, 5 thousands m3 of water (106,4% of projected volume). Projected dispense of gas to the shore in 2008 is set to be 1359 millions of m3.

To increase the exploration of oil, company hired a number of subcontractors and drilled 10035 meters our of 8270, which were initially projected. Exploitation drilling took place in “Bely Tigr” and “Drakon” oil fields. In total company drilled 32162 meters in 2008, 22264 of which with no subcontractors involvement. 10 of new “Vietsovpetro’s” exploitation drillings are complete and fully operational.

Joint Venture “Vietsovpetro” continues to expand its area of operations. Its primary interests include certain Vietnamese territories as well as Tanit and Guellala (Tunis), M2 (Myanma) territories. The executive board assessed the annual work of JV “Vietsovpetro” as satisfactory

They approved production and financial indicators of “Vietsovpetro” in 2009. Projected capacity in 2009 was set to 6200 thousands of tonns.

Moreover, members of the summit had accepted the plan for capital construction and total overhaul of offshore structures in 2009-2010, set the operations schedule for procuring industrial and ecological safety at production facilities of “Vietsovpetro”.

In order to retain highly-qualified personnel, attract new employees and improve quality of standards of living of the personnel, senior management of JV “Vietsovpetro” was given a task to prepare incentive plan through principle of monetary motivation, based on employee qualification, experience and the degree of responsibility.

In conclusion of the meeting, the executive board of Russian and Vietnamese parts of the council noted that the meeting was highly productive and will definitely lead to more effective cooperation of two companies, as well as cooperation in terms of newly formed Joint Venture “Rusvietpetro”.

Before the summit commenced, the Extraordinary and Plenipotentiary consular of the Russian Federation in Socialistic Rupublic of Vietnam Vadim Serafimov, General Director of JSC “Zarubezhneft” – Nikolay Brunich and deputy minister of Energy of Russian Federation – Stanislav Svyatlicky visited one of the production facilities “CTP-2” (Central technological platform number 2). Met Russian experts that got the guests acquainted with operational area, described the tasks and objectives, and shared their views and problems.

One of the most disturbing problems is a shortage of highly qualified personnel. This occurred due to previously inferred possibility of termination of operations of JV “Vietsovpetro” after 2010. Executive board was planning to exchange Russian specialists for Vietnamese and it caused certain employee imbalance.

Nikolay Brunich, pointed out that due to signature of intergovernmental arrangement about re-organization of JV “Vietsovpetro” in 2010, policy of manpower allocation and promotion will be altered. Human resources management are planning to organize procedure that will help them hunt Russian specialists with extensive work experience in the industry as well as attracting young specialists who just finished oil and gas universities. Brunich also annotated that executive board of the company will devote close attention to increase of monetary incentives of the employees of “Vietsovpetro”

The trip ended with delegates visiting Vungtau neighborhood where Russian employees of “Vietsovpetro” live.