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DOING BUSINESS IN VIETNAM OIL AND GAS INDUSTRY

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									                  Korea - Vietnam Energy Specialist Dialogue

GDOE-MOIT
VIETNAM


                                  
               VIETNAM – KOREA
             ENERGY COOPERATION 


                 General Directorate of Energy
                 Ministry of Industry and Trade
             CONTENTS
I. Vietnam’s energy situation
      1. Energy resource
      2. Energy production
      3. Power Sector
      4. Oil and Gas 
      5. Coal 
II. Vietnam – Korea energy cooperation
       1. Electricity
       2. Oil and Gas 
       3. Coal 
       4. Potential for Cooperation in Future
I. Vietnam’s Energy Situation 
1. Energy Resources 

• Coal reserves
    Total coal (anthracite) reserves explored is about 5.88 bill tons, in
    which, the reserve explored at levels A+B+C is about 4,9 bill
    tons.
•   Petroleum potential
    Total oil and gas proven, recoverable reserves is about 1200
    million tons, in which, the gas reserve is about 721 billion m3.
•   Hydro power potential and its exploitable potential
    The technical hydro power potential is of 123 bill kWh equivalent
    to capacity of 31.000 MW.
•   Renewable energy Sources Potential: Geo –Thermo, Solar
    energy, Wind Power, Biomass Potential. Uranium ,
 2. Energy Production

         Electricity   Coal               Crude Oil            Natural
                                                                Gas
         (Bill. kWh)   (Mil. Tons)         (Mil. Tons)        (Bill. m3)


2008     75.7          38.6                16                     7.3

2009     82.94         43.0                13.8                   8.0

2010     99.1          43.0                15                     9.4

2011     107.6         44.0                15                     8.2

½ 2012   51.6          25.0
3. The Power Sector (cont’d)
  Power generation share 2011 (Depend on kind of owner)
3. Power Sector 
  Power Generation Mix in 2011 by Fuel Type
 3. Power Sector (cont’d)

Generation Capacity by the end of 2011
- Total installed capacity of 23.000 MW
- Power generation growth rate was 13.5 %/yr in the period
   1996-2000, 14.7%/yr for the period 2000-2005 and
   12.9%/yr for the period 2005-2009.

The transmission grid by the end of 2010
- 500 kV lines: 3,438 km and total 500 kV substation
  capacity of 7.500 MVA.
- 220 kV lines: 8,497 km and total 220 kV substation
  capacity of 19,094 MVA.
 3. Power Sector (cont’d)
3.1 Development Program up to 2020 with an outlook to 2030

By 2020: Total capacity about 75,000 MW, of which:
   + Hydro Power & Pump Storage: Share 25.5 %( Capacity HPP 17.400
   MW; PSPP 1,800MW)
   + Coal Fired Power Plants: Share 48 %, Capacity 36.000MW
   + Oil & Gas Fired Power Plants: Share 16.5 %
   + Small Hydro Power & Renewable: Share 5.6 %
   + Imported Electricity: Share 3.1 % Capacity 2.200 MW
   + Nuclear: Share 1.3%, Capacity of 1,000 MW

By 2030: Total capacity about 146.800 MW, of which:
   + Coal Fired Power Plants: Capacity of 75.000 MW, Share 63.4%,
   Capacity 75.000MW
   + Small Hydro Power & Renewable: Share 9.4%
   + Imported Electricity: 4.9%, Capacity 7000MW
   + Nuclear: 6.6%, Capacity 10,700 MW
GENERATION SHARE TO 2030

                              2015              2020               2025               2030 
                                 Share              Share              Share              Share 
                         MW       %        MW        %        MW        %        MW        %
Hydropower & Pump 
     Storage            14.200   33.6%    17.300    26.5%    19.800    20.9%    21.000    15.5%
 Oil and Gas Fired 
  Thermal Power         10.500   24.9%    12.800    19.7%    16.700    17.6%    17.500    12.9%
 Coal Fired Thermal 
       Power            14.900   35.1%    29.200    44.7%    42.900    45.2%    75.300    55.5%

      Imported          1.070    2.5%     1.800     2.8%     4.600     4.8%     6.300     4.7%

 Renewable Energy       1.670    3.9%     3.100     4.8%     4.800     5.1%     4.800     3.6%

   Nuclear Power                 0.0%     1.000     1.5%     6.000     6.3%     10.700    7.9%
   Total Installed                                                              146.80
     Capacity           42.500            75.000             95.000               0            
                                                                                110.00
       Pmax             30.800            52.000             77.000               0            


Produced Electricity 
   (Billion kWh)        194.3             329.4              489.6              695.1          
 4. Oil and Gas  

 80 petroleum contracts signed
  – first contract signed in 1978
  – 63 in effective (48 in exploration stage, 15 in
    development and production stage)
4. Oil and Gas  (Cont’d)
    Production Profile (1997-2011)
5. Coal
Present Situation
  + The explored reserve of anthracite in Quang Ninh province is about
  10 bill tons.

  + The explored reserve in Red River Delta is about 210 bill tons(
  unexploited ).

  + There are 5 operating open cast mines and 30 operating pit mines in
  Quang Ninh province

  + The share of open cast mines is about 55-60% of total coal
  production and being decreased due to high dug volume of soil.

   + The pit mines production is increasing. The Vinacomin is investing
  in improvement and mordernization of pit mines to meet the coal
  demand after 2010.
5. Coal (Cont’d) 
  Development Plan
 1. Coal exploration:  
     a) Northeast coalfield :
      - Distribution mainly in Quang Ninh, a part in Bac Giang and Hai 
 Duong. This area has resources and reserves of the country's 
 largest anthracite coal are mobilized primarily on 2030 planning.

     - By the end of 2015, completing the resources exploration and coal 
 reserves of upper-level and a minus 300m area for the North East coalfield. By 
 2020, basically complete the exploration of coal to the bottom floor.
     b) Red River delta coal basin:
      - Distribution is mainly in the provinces of Thai Binh and Hung 
 Yen, Nam Dinh, have great potential in type A bituminous coal (sub -
  bituminous), low levels of exploration, mining conditions difficult, complex 
 and sensitive environment, ecology.

      - During the period 2012-2015, selected area contains some promising coal, 
 geological conditions - suitable for conducting mining exploration investment for 
 the test harness.

     - By 2030, completed basic exploration area contains coal mining 
 favorable conditions improve Khoai Chau - Tien Hai.
5. Coal (Cont’d) 
  Development Plan
2. Coal Production: 
   + 2012:   45 - 47 million tons.
   + 2015:   55 - 58 million tons.
   + 2020:   60 - 65 million tons.
   + 2025:   66 - 70 million tons.
   + 2030:   more than 75 million tons.

3. Coal Processing: 
   Strive to 2020, processing of coal development in 
   product diversification (direct fuel combustion, coal for 
   metallurgy, coal gasification, coal to liquid fuels, raw materials 
   for chemical industry etc. ..)

4. Coal Market: 
   Move toward full coal market, integration with regional markets and 
   international, which are regulated by the State.
II. Vietnam – Korea energy cooperation
1. Electricity Generation: 
     a. Nam Dinh - BOT – TaeKwang 
          + Capacity: 2 phase x 1200MW
          + Investment capital: 2,3 Bil. USD
          + Operation: 25 year after COD

      b. Mong Duong 1 (Quang Ninh) – EPC – Hyungdai
         + Capacity: 2 x 540 MW
         + Operation from 5-10/2015

      c. Supply equipments
         Thai Binh 2 (2x600 MW):       Dealim
         Mong Duong 2 (2x600 MW):   Posco

2. Others: 
         + Thermal plant equipments manufacturing (Doosan)
         + Technology transfer
         + HR training 
                  Scholarship:     PhD, Master, Bachelor
                  Short training:  Short course, study tour, workshop,…
              Nuclear Energy cooperation
1998:    Started discussion on Nuclear Power development 
         cooperation.
2003:  Joint study on Nuclear Power development policy, 
             including localization policy. 
5.2011: Signed MOU Between MKE and MOIT of 
         Cooperation in NPP, Industries, Energy and Mineral
7.2011: Established Join-Committee (JC). First Draft Overall 
         Joint Proposed Plan (OJPP) Approved by JC
10.2011:The 2nd Meeting of JC at Hanoi. Two Ministers of 
        MOIT and MKE approved main contents of OJPP.
11.2011:The 3rd Meeting of  Nuclear Power Sub-Committee 
        at Seoul. Signed Supplementary Document of OJPP.
3.2012: Vietnam Government Approved OJPP.
         Pre-FS Arrangement Signed by MOIT and MKE.
7.2012: Sign Pre-FS Implementation Plan. 
         (The Plan to be implemented from July 2012 to end 2013)
      The Main Contents of OJPP

1. Proven Safety and Technology
2. Technology Transfer & Localization
3. Human Resource Development
4. Stable Supply of Nuclear Fuel
5. Radioactive Waste Management
6. Site Selection Process & Candidate Site
7. Financing For the Project
2. Oil and Gas 
a. Up-stream (share with other contractors)
    - Blocks 15-1 (KNOC: 14,25%, SK: 9%)
    - Block 11-2 (KNOC: 75%)
    - PSC Block 15-1 (SK: 25%)
    - PSC Bolck 123 (SK: 20%)

b. Down-stream
     - PP Factory of Dung Quat Refinery: EPC Contract by 
     Consortium: Hyundai, LG, PVC/PVE
     - Nghi Son Refinery: 1st EPC contract by Tachnipp, JGC 
     and Chiyoda (Japan), SK
     - CO2 Factory of Phu My Fertilizer: EPC Contract by 
     Samsung
     - Dinh Vu Polyester Factory: EPC Contract by 
     Consortium: Hyundai, LG, PVC/PVE
  3. Coal

- Coal mining:
    Taekwang and Vinacomin: Nam Trang Bach Mine development

- Environment: 
     MIRECO and Vinacomin: Cooperate in waste water and mining 
     environment treatment in Trang Khe Mine (Quang Ninh)

- Export coal to Korea:
     2009: 1,7 Million Tons (98 Million USD)
     2010: 1,8 Million Tons (140 Million USD)
     2011: 1,5 Million Tons (141 Million USD)
          4. Cooperation Framework

   Under the direction of MOIT and MKE, relevant organizations 
     of the two side have coordinated to study 
i.  Study on the establishment of Vietnam’s energy policy up to 
     2025
ii. Study on Master Plan establishment of Vietnam’s oil 
     refinement and petrochemistry development up to 2025, 
     direction to 2050
iii. Study on Master Plan of Vietnam’s oil industry development 
     up to 2025, direction to 2050
iv. Study on the fulfilment of Master Plan of crude oil and 
     petroleum products reserve up to 2025, direction to 2050
   5. Potential for Cooperation in Future

 1. Investment in power generation (BOT, BT, …)

 2. Joint development Pre-FS of a nuclear power plant in Vietnam

 3. Electricity equipments manufacture

 4. Oil and Gas: Exploration and Production (E&P), Gas Industry, 
     Stock pilling and Processing (refinery – petrochemical, oil
     storage,…)

 5. Coal mine exploitation, reclamation, environment treatment 

 6. Training human resources for energy sector
THANK YOU

								
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