Gazprom, Petrovietnam Sign JV Deal

Russian energy giant Gazprom and Vietnam's oil and gas group Petrovietnam signed on Tuesday an agreement on establishing a joint venture.

The document on the joint venture, Gazpromviet, was signed during a visit by Vietnamese Prime Minister Nguyen Tan Dung to Moscow.

The Vietnamese premier was in Moscow to discuss large-scale projects with Russia. The agreement on the joint venture was signed by Gazprom CEO Alexei Miller and Petrovietnam general director Phung Dinh Thuc.

The parties also signed a document on strategic partnership, which stipulates active interaction between Gazprom and Petrovietnam in oil and gas projects in Russia, Vietnam and third countries as part of Gazpromviet.

In particular, the parties are set to jointly develop the Nagumanov oil and gas condensate field in the Orenburg region in the Urals, and also carry out prospecting and develop fields in Yakutia in northeast Russia, East Siberia and the Russian Far East.

The Nagumanov field is stipulated as the key target for cooperation between the two companies.

In November 2006, Gazprom and Petrovietnam signed an agreement on cooperation in hydrocarbon exploration, production, transportation and sale, the construction and operation of oil and gas pipelines and refineries.

In May 2008, the parties signed an agreement on further cooperation in geological prospecting and the further development of four new blocks off Vietnam's coast. The agreement also stipulated the establishment of Gazpromviet for work in Russia and third countries.

Gazprom's stake in the joint venture is 51% while Petrovietnam holds 49%. Gazprom is represented in the joint venture by its subsidiary Gazprom Zarubezhneftegaz.

In addition, the parties signed on 'Tuesday a supplement to the oil and gas contract on block 112 off Vietnam's coast, extending the contract to adjacent deposits.

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