Identifier
Created
Classification
Origin
09HANOI640
2009-07-10 02:40:00
CONFIDENTIAL
Embassy Hanoi
Cable title:
EXXON, PETROVIETNAM INK CONTRACT FOR PRODUCTION
how-toVZCZCXRO3729 RR RUEHCHI RUEHDT RUEHFK RUEHHM RUEHKSO RUEHNH RUEHPB DE RUEHHI #0640 1910240 ZNY CCCCC ZZH R 100240Z JUL 09 FM AMEMBASSY HANOI TO RUEHC/SECSTATE WASHDC 9875 INFO RUCNASE/ASEAN MEMBER COLLECTIVE RUEHZU/ASIAN PACIFIC ECONOMIC COOPERATION RUEHHM/AMCONSUL HO CHI MINH 6004 RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
C O N F I D E N T I A L HANOI 000640
SENSITIVE
SIPDIS
STATE FOR EAP/MLS MBROWN
STATE FOR EEB/ENR
ENERGY FOR TOM CUTLER AT INTERNATIONAL AFFAIRS
COMMERCE FOR 4430/MAC/AP/OPB/VLC/HPPHO
E.O. 12958: DECL: 07/09/2019
TAGS: ECON EFIN EINV ENRG EPET PREL VM
SUBJECT: EXXON, PETROVIETNAM INK CONTRACT FOR PRODUCTION
SHARING QUIETLY
REF: A. A) HANOI 52 (2008 RECAP OF SOUTH CHINA SEA
DISPUTE)
B. B) HANOI 525 (GAZPROM EXPANDING IN VIETNAM)
Classified By: DCM Virginia Palmer, E.O. 12958, Reasons: 1.4 (b) and (d
)
C O N F I D E N T I A L HANOI 000640
SENSITIVE
SIPDIS
STATE FOR EAP/MLS MBROWN
STATE FOR EEB/ENR
ENERGY FOR TOM CUTLER AT INTERNATIONAL AFFAIRS
COMMERCE FOR 4430/MAC/AP/OPB/VLC/HPPHO
E.O. 12958: DECL: 07/09/2019
TAGS: ECON EFIN EINV ENRG EPET PREL VM
SUBJECT: EXXON, PETROVIETNAM INK CONTRACT FOR PRODUCTION
SHARING QUIETLY
REF: A. A) HANOI 52 (2008 RECAP OF SOUTH CHINA SEA
DISPUTE)
B. B) HANOI 525 (GAZPROM EXPANDING IN VIETNAM)
Classified By: DCM Virginia Palmer, E.O. 12958, Reasons: 1.4 (b) and (d
)
1. (C) ExxonMobil (EM) and state-run PetroVietnam (PVN)
quietly signed a production sharing contract (PSC) on June 30
for two sets of blocks in the South China Sea that lie well
within China,s line of demarcation. The deal makes EM the
largest offshore acreage holder in Vietnam, with 14 million
acres.
2. (C) At a June 23 meeting with the Charge, ExxonMobil
Vietnam,s President Russ Berkoben previewed the deal and
plans for quiet signing given sensitivities with China (REF
A). The PSC moves EM,s cooperation with PVN beyond
completed feasibility studies to seismic exploration,
primarily for natural gas. Berkoben said EM consolidated the
two sets of blocks (blocks 117/8/9 approx. 50 miles east of
Danang, and blocks 156/7/8/9 approx. 325 mi. SW of Ho Chi
Minh City) into one PSC, in part to minimize a possible
repeat of China's negative reaction to EM's previous
activities in the area. Both sets of blocks fall within
China,s line of demarcation, the "cow's tongue." Berkoben
said that although EM is uncertain of China,s reaction, it
is ready if China reacts. Berkoben also noted that Russian
state-owned energy firm Gazprom is conducting seismic
exploration in nearby similarly-disputed Blocks 129-132 (REF
B) and has not experienced interference from China in its
operations.
END
MICHALAK
MICHALAK
SENSITIVE
SIPDIS
STATE FOR EAP/MLS MBROWN
STATE FOR EEB/ENR
ENERGY FOR TOM CUTLER AT INTERNATIONAL AFFAIRS
COMMERCE FOR 4430/MAC/AP/OPB/VLC/HPPHO
E.O. 12958: DECL: 07/09/2019
TAGS: ECON EFIN EINV ENRG EPET PREL VM
SUBJECT: EXXON, PETROVIETNAM INK CONTRACT FOR PRODUCTION
SHARING QUIETLY
REF: A. A) HANOI 52 (2008 RECAP OF SOUTH CHINA SEA
DISPUTE)
B. B) HANOI 525 (GAZPROM EXPANDING IN VIETNAM)
Classified By: DCM Virginia Palmer, E.O. 12958, Reasons: 1.4 (b) and (d
)
1. (C) ExxonMobil (EM) and state-run PetroVietnam (PVN)
quietly signed a production sharing contract (PSC) on June 30
for two sets of blocks in the South China Sea that lie well
within China,s line of demarcation. The deal makes EM the
largest offshore acreage holder in Vietnam, with 14 million
acres.
2. (C) At a June 23 meeting with the Charge, ExxonMobil
Vietnam,s President Russ Berkoben previewed the deal and
plans for quiet signing given sensitivities with China (REF
A). The PSC moves EM,s cooperation with PVN beyond
completed feasibility studies to seismic exploration,
primarily for natural gas. Berkoben said EM consolidated the
two sets of blocks (blocks 117/8/9 approx. 50 miles east of
Danang, and blocks 156/7/8/9 approx. 325 mi. SW of Ho Chi
Minh City) into one PSC, in part to minimize a possible
repeat of China's negative reaction to EM's previous
activities in the area. Both sets of blocks fall within
China,s line of demarcation, the "cow's tongue." Berkoben
said that although EM is uncertain of China,s reaction, it
is ready if China reacts. Berkoben also noted that Russian
state-owned energy firm Gazprom is conducting seismic
exploration in nearby similarly-disputed Blocks 129-132 (REF
B) and has not experienced interference from China in its
operations.
END
MICHALAK
MICHALAK