Vietnam, Russia to Boost Oil & Gas Cooperation

Relevant authorities of Vietnam and Russia September 8 gathered in Hanoi to consider proposals by the Vietnam’s state-owned oil monopoly PetroVietnam group and its Russian partner OAO Zarubezhneft on conditions, form and the roadmap of a new cooperation based on Vietsovpetro joint venture after 2010.

 

At the third session of the Vietnam-Russia Intergovernmental Committee for Oil and Gas, the Vietnamese delegation led by Deputy Minister of Industry and Trade Do Huu Hao and the Russian team headed by V.V. Salamatov agreed to propose the two governments to change the Vietnam-Russia Oil and Gas Joint Venture (Vietsovpetro) into a two-member limited company from January 1 of 2011.

 

The hoped company will inherit Vietsovpetro oil and gas operations at Block 09.1 on the Vietnam’s continental shelf, including Bac Ho and Rong oilfields; and will speed up negotiations to clinch product-sharing contract for Block 04.3 in the Nam Con Son Basin within this year.

 

Shareholders namely PetroVietnam and OAO Zarubezhneft agreed to fix a 51 per cent stake by the Vietnamese side and 49 per cent by the Russian partner.

 

The two parties also consented to allow PetroVietnam and Zarubezhneft to set up a joint venture so-called Rusvietpetro that will undertake oil and natural gas exploration and production in Russia with 51 per cent of its stake to be held by the Russian company and 49 per cent by the Vietnamese side.

 

PetroVietnam will initially be authorized to join oil and gas exploration and production at four blocks in the Nhennheski region of Russia that Zarubezhneft has recently won the bid.

 

Vietsovpetro has set a new target of exploiting 7.65 million tons of crude oil in 2008, 550,000 tons more compared to the former target set earlier for this year.

 

In the first half of this year, Vietsovpetro produced 4.56 million tons of crude oil and contributed US$2.74 billion to the State budget, up US$1 billion compared to the same period last year. (Labor, The People)