Vietnam-Russia Oil, Gas JV Signs $5Bln Insurance Policy
Vietnam-Russia oil and gas joint venture Vietsovpetro has bought a risk management insurance policy with an indemnity up to US$5 billion for the 2007-10 period.
PetroVietnam Insurance Co. (PVI), a branch of PetroVietnam which holds half of stakes in Vietsovpetro, provided the insurance service for the joint venture.
The insurance policy is the largest in Vietnam to date.
Vietsovpetro paid US$40 million for the four-year insurance policy.
A PVI official said the long cooperation brings better insurance conditions and terms for Vietsovpetro.
From 1996 to 2006, PVI and Vietsovpetro signed strategic cooperation deals. However, both sides only agreed to single-year insurance policy.
In 2006, Vietsovpetro exploited nearly 10 million tons of crude oil (1 ton=7.33 barrels) and 1.9 billion cubic meters of gas. Its crude oil sales generated US$5 billion in the year. (VnEconomy)
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