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Zarubezhneft to extend operation of Vietnamese JV at least until 2045

Over 40 years Vietsovpetro specialists drilled 644 wells and produced 240 mln tonnes of oil, with the venture accounting for 30% of the national crude output in Vietnam

MOSCOW, June 21. /TASS/. Zarubezhneft that has marked the 40-th anniversary of the joint venture with Vietnam, Vietsovpetro, plans to extend its operation at least until 2045 and plans to enter new effective projects on the shelf of Vietnam, the company said in a statement on Monday.

Soviet Union and Vietnam signed an intergovernmental agreement on establishing a joint Soviet-Vietnamese venture Vietsovpetro on a parity basis in June 1981.

"We plan to expand the area of activity and enter new effective projects on the shelf of Vietnam. We have already begun negotiations with the Vietnamese side to extend the Intergovernmental Agreement until 2045 at least," General Director of Zarubezhneft Sergey Kudryashov was quoted as saying.

Over 40 years Vietsovpetro specialists drilled 644 wells and produced 240 mln tonnes of oil, with the venture accounting for 30% of the national crude output in Vietnam. The main field is the White Tiger, which is at a mature stage of its life cycle. "To maintain the current production at the level of 3 mln tonnes of oil per year, Vietsovpetro is optimizing wells operation and developing systems for maintaining formation pressure. For example, over the past 5 years, the base production decline rate has been reduced by almost in half," the company said.

Vietsovpetro also owns shares in three new projects - blocks 09-3/12, 16-1/15 and 09-2/09. Moreover, it acts as an operator for Zarubezhneft for blocks 04-3 and 12/11.

Zarubezhneft is a diversified oil and gas holding. The Russian Federation is its sole shareholder. The company holds 13 hydrocarbons prospecting, exploration and production licenses in Russia and participates in development of the Kharyaga field within the production sharing agreement framework. Moreover, the company is involved in offshore production in Vietnam both in a joint venture with Vietsovpetro, its main production asset, and independently.