TNK-BP, in which BP holds a 50% share, Monday said that it would buy BP's upstream and pipeline assets in Vietnam and Venezuela for an overall price of $1.8 billion.
Phung Dinh Thuc, PetroVietnam's CEO, told the Saigon Times in an interview Tuesday that the state-owned corporation is considering negotiating for the assets in which PetroVietnam holds a share and will buy the oil major's stake if BP offers a "reasonable" price.
It was not immediately clear how this might affect the deal already announced between BP and TNK-BP. Calls to BP's representative office in Hanoi went unanswered.
Thuc said that since PetroVietnam is a partner in two of the ventures in question, it has the right to approve the sales. From October 19, when it was informed of the deal between BP and TNK-BP, PetroVietnam has 60 days to decide whether to invoke first-buyer rights, he was quoted as saying.
Thuc also said that as a venture partner PetroVietnam has the right to withhold approval of the deals if it finds that TNK-BP does not have the technical and performance capability to replace BP in the projects.
He, however, admitted that TNK-BP was a "relatively powerful" unit.
In the deal announced Monday, TNK-BP said that along with BP's Venezuelan assets, it will acquire from BP in Vietnam a 35% stake in offshore gas production block 06-1, which contains the Lan Tay and Lan Do gas, condensate fields; a 32.7% stake in the Nam Con Son Pipeline and terminal; and a 33.3% stake in the Phu My 3 power plant.
PetroVietnam's pre-emptive rights claims are based on a 20% holding in block 06-1 and a 51% holding in the Nam Con Son Pipeline project. The state oil company has no stake in the power plant.
Together, these assets in Vietnam form an integrated gas and power chain with a production capacity of 30,000 b/d of oil equivalent (on a working interest basis), or 15,000 boe/d on a net entitlement basis.
Vietnam-based BP's representative told local press that the October 18 deal between BP and TNK-BP needed the approval of Vietnam's government.
Currently, BP has about 140 employees in Vietnam. It plans to transfer most of these people to TNK-BP after finishing the deal with TNK-BP.
ONGC Videsh, the international arm of India's state-owned Oil and Natural Gas Corporation, is the third partner in the offshore gas block.
ConocoPhillips is the third venture partner in the Nam Con Son pipeline and terminal.
China ChemNet will hold China SNG/CBM (International) Summit on 10-12 Nov, 2010 in Changji City of Xinjiang Province. This summit is the high-end international summit under the guidance of authorities and experts, conference topics include five major aspects of policy interpretation, industry research, business promotion, business meetings and Sino-foreign cooperation, is not only the new type coal chemical industry conference, but also the best opportunity to energy giant polymerization, government and enterprises investment, investors looking for the project. Sincerely welcome you to attend the summit. Details: http://news.chemnet.com/list/zt/meeting/2010energy/index.html
