Vietnam, Russia Sign Pact to Extend Oil Cooperation

HANOI (Dow Jones Newswires), Dec. 28, 2010

Vietnam and Russia have signed an agreement to continue oil exploration and production cooperation in Vietnamese waters by extending the life of an oil joint venture beyond 2010, the Vietnamese government said Tuesday.

The agreement was signed Monday in Hanoi by Vietnam's Minister of Industry and Trade Vu Huy Hoang and Russian Ambassador to Vietnam Andrey G. Kovtun.

The agreement will extend the lifespan of Vietsovpetro, a joint venture between PetroVietnam and Russia's Zarubezhneft, the government said, but didn't mention a time frame.

Vietsovpetro was founded in 1981, and in 1991, the two countries signed an agreement to extend it to end-2010.

The joint venture is one of the key production units of PetroVietnam. It is expected to produce 6.4 million metric tons of crude oil this year, exceeding its annual target by 200,00 tons, the government said.

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