Total Actively Expanding Activities in Vietnam

Total has received approval from the Vietnamese government to acquire a 35 per cent interest in the production sharing contract for offshore exploration Block 15-1/05, alongside PetroVietnam Exploration and Production (PVEP – operator, 40 per cent) and SK Corporation of South Korea (25 per cent).

 

Covering an area of 3,840 square kilometres, Block 15-1/05 is located roughly 40 kilometres offshore in a water depth of 40 meters, in the Cuu Long Basin near the Su Tu Den, Su Tu Vang, Su Tu Trang and Su Tu Nau discoveries. 2D seismic surveys have already been conducted on the block.Under the terms of the contract negotiated with PetroVietnam, Phase 1 exploration will be launched before the end of the year and will include 800 square kilometres of 3D seismic acquisition and two wells. The agreement also calls for stepped-up international cooperation between PetroVietnam and Total, particularly in exploration. Total's entry into Vietnam is in line with its strategy of diversifying its assets in the Asia-Pacific region.

 

Total has also continuously improved its diversified products and marketed them through its nationwide distribution channel.

In 2006, Total sold 77,000 MT LPG in Vietnam, which represents about 10 per cent market share, from its 4 dedicated joint ventures: Elf Gaz Saigon, Elf Gaz Danang, Total Gas Haiphong and Total Gas Cantho. These 4 affiliates have their own import terminals, bottling plants and market both Tatalgaz and Elf gaz brands.Total also distributes petroleum products in Danang under Total brand and is the only international petroleum company operating in distribution sector in the country.

 

Total distributes lubricants through its 100 per cent owned subsidiary Total lubricants Vietnam. The company manufactures automotive and industrial lubricants at its blending plant in Haiphong and markets them countrywide through 50 distributors and 7,000 dealers. Total lubricants Vietnam plant was granted ISO 9001 certification in 2006 it also manufactures products for prestigious OE Ms (Original Equipment Manufacturer) like Honda and General Motors. Total lubricants Vietnam has reached 2.5 per cent market share.

 

In addition to its business activities, Total has also actively carried out its charity programmes. Total has contributed to the local community with an education programme. More than US$135,000 was used for the construction of new class rooms, primary schools and granted to children poor families.
Luong Tuan