latest wireline analysis results, page-32

N5 what you are stating is the thermal conversion factor which unfortunately does not replicate the economics in terms of conversion.

The actual converter factor used will depend totally on the jv's sale plan. eg local market, Hainan Is, offload etc.

The Vietnam domestic market is less favoured as the govt historically has held gas/oil prices low to reduce inflation effects whilst growing their economy. Change however is a foot and they are likely to move toward an open market system over time.

Here is an extract from "Energy Profile of Vietnam" updated May 2013:

"Currently, Vietnam maintains wholesale and retail oil prices lower than international oil market prices to sustain a growing economy, keep inflation from rising, and protect consumers, resulting in revenue losses for oil distributors. Vietnam's Ministry of Finance attempts to manage these losses through tools such as import tax and tariff reductions and the Fuel Price Stabilization Fund, which allows distributors to withdraw cash. In times of high crude oil prices, though, the fund's resources tend to diminish. Vietnam intends to gradually roll back fuel subsidies in the oil and natural gas sector and use market-based pricing in order to alleviate state budget strains in times of high international oil prices. Limited reform under Decree 84 allows fuel retailers to increase oil prices by 7 percent when international prices fluctuate by the same rate within a 30-day period, but the government typically tries to maintain lower prices for consumers and uses this measure as a last resort to reverse distributors' revenue losses.

The full article can be read at: http://www.eoearth.org/view/article/152542/