Vietnam, Russia Accelerate Oil, Gas Cooperation

Vietnam and Russia have jumped up another step in oil and gas exploration and exploitation cooperation after the two governments signed a protocol to add several aments and supplements to the existing inter-governmental agreement, Ministry of Finance’s website said.

 

The protocol, signed between Deputy Minister of Finance Truong Tri Trung and Ambassador to Vietnam Serafimov Vadim Viktorovich on December 16, allows Vietnam to weigh up corporate income tax rates on oil and gas in Vietnam-Russia joint ventures to 50 per cent from the initial 40 per cent October 1, 2004.

 

And as of January 1, 2005, Vietnam removes taxes on profits, including remittance sent abroad, on which the Russian side earns.

 

The Vietnam-Russia inter-government agreement, signed on June 19, 1981, opened the legal background for the establishment of Vietsovpetro oil and gas joint venture and marked the debut of the Vietnamese petroleum industry.

 

Since 1991, Vietsovpetro has pumped 150 million tons of crude and brought onshore 15 billion cubic meters of gas.

 

Vietsovpetro plans to exploit 11 million tons of crude oil this year, over half of Vietnam’s total exploitation plan of less than 20 million tons.
Vietnam Financial Times