• 2 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 5 minutes Middle East on brink: Oil tankers attacked off Oman
  • 8 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 39 mins The Plastics Problem
  • 3 hours Emissions Need To Be Halved To Avoid 3C Warming
  • 3 hours Confirmed: UN Expert Urges Probe Of Saudi Prince Over Khashoggi Killing
  • 37 mins OPEC, GEO-POLITICS & OIL SUPPLY & PRICES
  • 30 mins Hormuz and surrounding waters: Energy Threats to the World: Oil, LNG, shipping markets digest new risks after Strait of Hormuz attack
  • 5 mins Coal Boom in Asia is Real and a Long Trend
  • 53 mins The Magic and Wonders of US Shale Supply: Keeping energy price shock minimised: US oil supply keeping lid on prices despite global risks: IEA chief
  • 3 hours The Pope: "Climate change ... doomsday predictions can no longer be met with irony or disdain."
  • 57 mins Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 53 mins US to become net oil exporter in November: EIA
  • 22 mins Trudeau approves Trans Mountain Pipeline
  • 4 hours Fareed Zakaria: Canary in the Coal Mine (U.S. Dollar Hegemony)
  • 3 hours Hydrogen FTW... Some Day
  • 1 hour US Shale Drilling lacks regulatory body.
Putin’s $40 Oil Lie

Putin’s $40 Oil Lie

Much has been made of…

Canada’s Oil Patch Faces Investor Exodus

Canada’s Oil Patch Faces Investor Exodus

Capital investment across Canada’s oil…

Russia Reaches Oil And Gas Agreement With Vietnam

The Russian oil company Gazprom Neft has tentatively agreed to buy a 49 percent share of Vietnam’s only oil refinery and to join with PetroVietnam in exploring for and developing oil and gas resources beneath the Pechora Sea in the Russian Arctic.

The tentative agreements were signed in Hanoi on April 6 and witnessed by Russian Prime Minister Dmitry Medvedev and Nguyen Tan Dung, Vietnam’s premier. Gazprom Neft said in a statement that the contracts are expected to be made binding by October 31.

“The projects will be implemented via joint ventures of Gazprom Neft and PetroVietnam, in which the stakes of each party will be negotiated,” the Russian company said. Medvedev said bilateral operations can likely begin in 2016, but neither side disclosed any of the deals’ financial details.

Related: EIA Changes Tack On Latest Oil Crisis

Russia and Vietnam have long had a close relationship. Not only was Moscow Hanoi’s chief ally during the Vietnam War of the 1960s and early 1970s, it also has been an energy partner since the 1980s, when Russia helped Vietnam build hydroelectric plants. Later the two countries entered into a joint venture on oil and gas called Vietsovpetro, and Moscow helped Hanoi develop nuclear power plants.

In the deal outlined on April 6, Gazprom Neft said it alone had the right to negotiate with PetroVietnam on buying 49 percent of the stock in Binh Son Refining and Petrochemical Co., which operates Vietnam’s Dung Quat refinery. Under Vietnamese law, no foreign entity can own more than 49 percent of a Vietnamese company.

Related: The Top 10 Largest Oil And Gas Fields In The United States

Dung Quat now refines about 48 million barrels of oil a year, about 30 percent of the oil products consumed in Vietnam. By 2022, however, with Russian help, the facility will be upgraded to increase its refining capacity.

As for Arctic oil exploration and production, Gazprom Neft and PetroVietnam said that by the coming autumn, they expect to issue a lineup of their top-priority oil and gas fields and reach a final agreement on the terms of the joint venture.

After the energy documents were signed, Medvedev said Vietnam appeared ready to be part of a free trade zone in cooperation with the Russian-led Eurasian Economic Union.

Related: Iraq Boosts Oil Output In Face Of Security Problems

“Almost all of the parameters have been agreed, and the preparation of documents have reached the final stage,” the Russian premier said, and added that he hoped Moscow and Hanoi would sign a contract on the matter soon. Dung said he expects those papers will be signed in the middle of 2015.

“Our goods turnover has dropped a bit lately, and in order to improve the situation, we decided to instruct our ministers, businessmen, and organs from both sides to take measures on signing an agreement soon on a free trade zone,” Dung and Medvedev said in a joint statement.

The Eurasian Economic Union is an economic association of countries primarily from northern Eurasia that came into effect on Jan. 1, 2015. Besides Russia, its members include Armenia, Belarus and Kazakhstan. Kyrgyzstan will formally join next month.

By Andy Tully Of Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News