OIL AND GAS GROUP NATIONAL VIETNAM REPUBLIC OF VIETNAM SOCIALIST

VIETNAM GAS CORPORATION - JSC Independence - Freedom - Happiness

Number: / TTr KVN Ho Chi Minh City, Day May 2018

REPORT
On investment through project construction
Gas pipeline Nam Con Son 2 adjustment

Dear: General Meeting of Shareholders

Vietnam Gas Corporation - Joint Stock Company (PV Gas)

Pursuant to the Enterprise Law No. 68/2014 / QH13 November 26, 2014; Pursuant to Decree
71/2017 / ND-CP dated 06/06/2017 of the Government guidelines on corporate governance applicable
to public companies;

Pursuant to Circular No. 95/2017 / TT-BTC dated 09/22/2017 of the Ministry of Finance, guiding a number
of articles of Decree 71/2017 / ND-CP;

Pursuant to Regulation Vietnam Gas Corporation - Corporation,

BOM Vietnam Gas Corporation - Joint Stock Company (PV Gas) respectfully submit to the General
Meeting of Shareholders to consider and approve investment projects construction of gas pipeline Nam Con Son
2 adjustments.

Attached documents : Content key investment project construction gas pipeline Nam Con
Son 2 adjustment

TM. ADMINISTRATIVE COUNCIL

Recipients: CHAIRMAN
• As above;
• Save: VT.

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 Main Content Investment Project Pipeline construction

Nam Con Son 2 gas adjustment

first. Name of project: Gas Pipeline project in Nam Con Son 2;

2. Construction investment objectives:

• Investment Objective Phase 1 of the project pipeline Nam Con Son 2:

- Ensure safe investment and collected, transported around 7.7 billion m3 of gas and Thien Ung
Dai Hung on shore from May 06/2015, other mines as Dai Yue Lot 05-1b & c and other
potential mines on shore gives consumers the Southern region to supplement the gas
shortage;

- Take advantage of the existing infrastructure of the gas collection system Advanced Bach Ho and efficient use
of resources invested by the extension of the investment;

- Ensuring the overall objectives of the project pipeline Nam Con Son 2 has been approved by
the Group in Decision No. 801 / QD-DKVN dated 27/01/2011 and retain uniformity, overall
regulation development infrastructure, gas pipelines Southeast region.

• Compared with the adjusted target of 801 decision / QD-DKVN dated 27/01/2011 and investment Phase
2 of the gas pipeline project in Nam Con Son 2:

- Ensuring the needs of collecting, transporting and processing gas White Lion, Yellow Star-Dai
Yue, Aquila - Ursa and reserve pipelines Bach Ho - Dinh. Besides, due to gas resources Hai
Thach - Jupiter is connected and transported to shore via pipeline NCS 1 should aim of the
project will be adjusted to not receiving, shipping and Hai Thach gas source processor -
Jupiter;

- Additional capacity for receiving and processing gas, increased flexibility in the operation of gas works
(between GPP Dinh Co plant, terminal and GPP2 NCS);

- Sticking to the overall objectives of the project pipeline, the Nam Con Son 2 gas was Petro
Vietnam approved in Decision 801 / QD-DKVN dated 27/01/2011 and retain uniformity, total to
develop infrastructure gas pipeline South East region.

3. Content and construction scale:

• State 1:

- Investment in construction of pipeline 26 "connection to Bach Ho mine Aquila with about

151.35 km length to transport gas Aquila, Ursa (completed and put into operation).

• Phase 2:

- Marine pipeline: Length of about 117 km, 26 inch diameter;

- Pipeline from the landfall station to factory GPP2 Long Hai;

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 - Onshore pipeline section: product pipelines dry gas from the Phu My GDC GPP2; Condensate
pipeline products from GPP2 to Thi Vai; LPG product pipeline from GPP2 to Thi Vai ;.

- Gas Treatment Plant (GPP2) with a design capacity of 07 million m3 of gas / day.

4. Total investment adjustments:

After-tax value
TT CONTENT COSTS
VND USD

A Value expected finalization phase 1 2.627.634.842.749 192 974 002

B Total investment phase 2 3,855,373,551,831 640 489 255

C Total investment (including stage 6,483,008,394,580 833 463 257

1 and phase 2)
Converted to dollars
D - Phase 1: 19.500 VND / USD 1137606273
- Stage 2: 22 760 VND / USD

5. Economic indicators, financing of the project:

Economic effects of the proposed project (*) as follows:

A. The factory GPP2:

IRR NPV
Factory GPP2 (%) (Tr.USD)

14.3% 47.83

B. The sea pipeline - the banks:

IRR (*) NPV Tariff

(%) (Tr.USD) (USD / trBTU)

NCS2 sea pipeline 12.0% 87.32 2.09

Shore pipeline NCS2 12.0% 6.21 0.23

(*) The economic efficiency, financial project is based on the following assumptions:

+ Shipping charges coastal and pipeline: shipping charges (tariff) is calculated with the assumption
to ensure effective IRR = 12%. Charges will be determined by the competent authority for
approval.

+ Economic efficiency of the project is calculated and will be interim update, correct goods before PVGas

signed EPC contract to implement the project.

6. Investment funds: 70% commercial loans and 30% equity.

7. Duration of the project:

Project completion time in quarter 3/2020 and is expected to be accurate when the tempo goods Gold
Star mine development - Dai Yue been approved by competent authorities.

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