Oil and Gas Exploration and Production

Domestic exploration and production activities: Petrovietnam has recently signed six new petroleum contracts of blocks 05- 2/10 (with PVEP/Talisman), 148-149 (with PVEP), 135-136/03 (with PVEP/Talisman/Pearl), 45 (with Mitra/PVEP), 102&106/10 (with PVEP) and 13/03 (with Santos/PVEP), increasing the number of effective contracts to 60.

During the last year, Petrovietnam conducted survey and acquisition of over 12,500 km 2D and 5,600 km2 3D seismic in accordance with the signed contracts and general exploration programme for exploration and appraisal of oil and gas potential in structures. Petrovietnam drilled 82wells, among them 11 for exploration, 10 for appraisal, 61 for production and some others for water injection andwell-to-well connection with the total drilling length of 222,000m at the expense of about 1.160 billionUS Dollars.

As a results of such exploration – appraisal drilling campaign, several significant oil and gas discoveries were made in wells GT-1X,MT-1X (Block 09-1, Vietsovpetro), CVX-2X (Block 117-119, ExxonMobil) and others, leading to the total recoverable reserve increaseby 35 million t.o.e in2011, thus ensures the reserves increaseby 130 to140 million t.o.e for the period 2011-2015.

Overseas exploration and production activities: Implementing the Decision No. 386/QD-TTg dated 9 ofMarch 2006 by the Prime Minister of Vietnam in regards to the vision and primary targets in-overseas investment strategy, during the last year Petrovietnam engaged in new petroleum contracts, increasing the total number of effective exploration and production projects to 20 in 14 countries, including the Russian Federation, SNG countries,Middle East, Northern and Central Africa, Latin America and ASEAN countries.

Generally, in the period of 2011 – 2015, Petrovietnam will expedite the exploration and production activities both in Vietnam and overseas, targeting on recoverable resource increase by 35-40 million t.o.e and sustainable production of 25-28 million t.o.e a year. To achieve such the goal, the active promotion programme were carried out, the significant investment amounts were attracted for its in-country projects and a number of petroleum contracts were signed, including ones in the deepwater and remote offshore acreages. As for its overseas investment strategy, Petrovietnam have gained positive achievements, thus enables to increase the oil and gas reserves and production, contribute considerably to the national energy security of Vietnam andgraduallyenhance the Group's positionandimagein the regionalandglobal arena.

Source: PVN/ VietnamEnergy.vn