Russian-Vietnamese oil field swap reshapes energy ties
The Russian company "Zarubezhneft" plans to transfer 35% of its shares in the Kharyaga oil field project in exchange for 49% of shares in future projects in Vietnam. This agreement is expected to be finalized by 2027, with details published on the legal acts portal.
By 2027, "Zarubezhneft" will transfer 35% of its shares to the Vietnamese oil and gas company Petrovietnam in the Kharyaga oil field project, according to reports from Kommersant.
The Kharyaga oil field is situated in the Nenets Autonomous Okrug, located beyond the Arctic Circle.
In return, "Zarubezhneft" will acquire 49% of shares in upcoming projects on the Vietnamese continental shelf. This information is sourced from a document published on Russia's legal acts portal.
The agreement states that "Zarubezhneft" will transfer half of its 70% stake in the Kharyaga project to Petrovietnam.
Consequently, Petrovietnam will acquire 35% of the shares. The agreement regarding Kharyaga has been extended until 2050. The responsibility for implementing the agreement lies with the Russian Ministry of Energy and the Vietnamese Ministry of Industry and Trade.
Initiated in 1999, the Kharyaga project is one of only three Russian projects operating under a production sharing agreement.
In 2022, Norwegian Equinor and French TotalEnergies exited the project, which allowed "Zarubezhneft" to increase its control to 90% of the shares. The remaining 10% is owned by the Nenets Oil Company.
