Russian oil giant to supply nearly 100 million tons of oil to Petrovietnam

By Toan Dao   June 18, 2016 | 09:03 pm GMT+7

Russia’s leading energy company, Rosneft, has signed a long term oil supply contract with Petrovietnam Oil Corporation (PV Oil), a subsidiary of state-owned Petrovietnam, at the St Petersburg International Economic Forum on June 16, VietnamPlus reported Friday.

The contract provides for the supply of up to 96 million tons of oil before 2040 to the Vietnamese oil and gas group.

The document was signed by Rosneft CEO Igor Sechin and PV Oil Vice-President Vo Khanh Hung.

Rosneft CEO Igor Sechin (L) and PV Oil Vice-President Vo Khanh Hung (R) at the signing ceremony. Photo by VietnamPlus/Khanh Hung

Rosneft CEO Igor Sechin (L) and PV Oil Vice-President Vo Khanh Hung (R) at the signing ceremony. Photo by VietnamPlus/Khanh Hung

Rosneft will establish itself as a leading provider of energy resources in one of the most dynamically developing economies of the Asia-Pacific region, Sechin said.

The transaction will be sealed once necessary regulatory and additional approvals are obtained.

The deal comes after Russia’s top oil and gas companies signed a number of cooperation agreements and memorandums with Petrovietnam in May, during a visit by Vietnam’s Prime Minister Nguyen Xuan Phuc to Russia.

Petrovietnam signed a cooperation agreement with Rosneft, two memorandums of understanding with gas giant Gazprom, on new oil and gas upstream projects and gas use in power generation, and a production-sharing agreement with Vietsovpetro, its 51:49 joint venture with Russia’s Zarubezhneft.  

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