Russia-Vietnam oil deal reshapes Arctic and Asian interests
The Russian company "Zarubezhneft" plans to transfer 35% of its shares in the Kharyaga oil field project in exchange for 49% in future projects in Vietnam. The agreement is scheduled to be finalised by 2027, and the details have been 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 Kommersant.
The Kharyaga oil field is situated in the Nenets Autonomous Okrug, beyond the Arctic Circle.
In return, "Zarubezhneft" will receive a 49% share in future projects on the Vietnamese continental shelf. This information is sourced from a document published on Russia's legal acts portal.
The agreement specifies 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 Russian Ministry of Energy and the Vietnamese Ministry of Industry and Trade are responsible for the execution of the agreement.
The Kharyaga project, initiated in 1999, is one of the three Russian projects operating under a production sharing agreement.
In 2022, Norwegian Equinor and French TotalEnergies exited the project, enabling "Zarubezhneft" to increase its control to 90% of the shares. The remaining 10% is owned by the Nenets Oil Company.
