Vietsovpetro Plans Overseas Oil, Gas Operations
Vietsovpetro, an equal oil and gas joint venture between Vietnam and Russia, has unveiled a plan to expand overseas oil and gas operations from now until 2010, in spite of nearing the joint venture life expiry.
Vietsovpetro will invest around $60 million each year until 2010, a company official said. “The investment is only the preparatory steps for further operations in the future,” he added.
The joint venture will focus on offshore equipment fabrication and repair, pipeline installation, drilling services, well geophysics services, offshore rescue activities, field operations and maintenance services.
Currently, offshore services contributed only 4 per cent of Vietsopetro’s revenues, while earnings mainly rely on crude oil production.
Vietsovpetro has revised up its crude oil output to nine million metric tons this year instead of the initially planned 8.6 million, higher than last year’s 9.6 million tons, accounting for some 60 per cent of Vietnamese oil output.
From 1986 to 2006, Vietsovpetro produced 160.6 million tons of crude oil and earned nearly $33.4 billion revenues.
Russia has been in negotiation with Vietnamese authorities on extending the joint venture beyond the current 2010 expiration. (Vietnam Industrial Times)
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