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Russia’s revenues from oil cooperation with Vietnam to rise by $745 mln — paper

Russia will be able to tap existing oil and gas fields on Vietnamese territory, and will receive support from the Russian-Vietnamese joint venture Vietsovpetro

MOSCOW, November 21. /TASS/. Russia may provide tax exemptions to the joint Russian-Vietnamese oil company Rusvietpetro in exchange for Russian companies being allowed to tap oil fields in Vietnam.

Under these conditions, Russia’s budget revenues could go up by 65.5 bln rubles ($744.6 mln), Izvestia wrote citing government documents.

"It is suggested that the protocol stipulating measures to encourage the activities of Rusvietpetro JV by the state on Russian territory, be ratified <…> This will make it possible to increase the share of recoverable oil, taking into account the declining production volumes due to the transition to the late stage of field development. <…> The aggregate influence of measures of mutual economic support provided to energy projects by the governments of Russia and Vietnam will result in an increase in federal budget revenues by 65.5 bln rubles," according to the government documents.

Russia will be able to tap existing oil and gas fields on Vietnamese territory, and it will also receive support from the Russian-Vietnamese joint venture Vietsovpetro, the paper said.

Vietsovpetro, Rusvietpetro, Gazpromviet and Vietgazprom are enterprises set up by Vietnamese state oil and gas giant Petrovietnam and Russian companies Zarubezhneft and Gazprom.

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