Rosneft, PetroVietnam in Pechora Sea JV

Rosneft and PetroVietnam Oil and Gas Group have reached an agreement to create joint ventures for work at two blocks of the Pechora Sea shelf.

Rosneft share in the JV will amount to 66.67%, and PetroVietnam will get 33.33%.

The agreements were reached within the Agreement on general cooperation for geological exploration, hydrocarbons exploration and production on the Pechora Sea shelf regarding Yuzhno-Russky and Zapadno-Matveevsky license blocks signed by the companies 12 November 2013 within the framework of President of the Russian Federation Vladimir Putin visit to Vietnam.

Overall recoverable reserves from the two blocks are estimated at 367 million tons of oil and 64 billion cubic meters of gas; overall ABC1+C2 recoverable reserves are 13 million tons of oil and 52 billion cubic meters of gas. Geological Prospecting and Exploration in compliance with license commitments regarding the two blocks requires drilling of 5 exploration wells and seismic survey, and is provisionally estimated at 1.5 billion dollars.

The parties particularly noted best practices of mutually beneficial cooperation and strong confidence between the companies on the shelf of Vietnam. PetroVietnam representatives expressed their readiness to participate in new projects in Russia, and also to assist expansion of Russian projects on the Asian-Pacific Region market.

Related: Rosneft, PetroVietnam discuss offshore projects