Rusvietpetro will have stated reserves exceeding 100 million tons in the near future.

Nikolai Brunich, Director General of Zarubezhneft, and Phug Dinh, the Chief Executive Officer of Petrovietnam, entered into several cooperation agreements for developing  cooperation on projects in the petroleum industry.

According to Viktor Gorshenev, Zarubezhneft first deputy general director, the agreements contemplate the creation of a tight bond between the Vietnamese oil sector and the Russian company. Specifically, it is expected that in October of 2010 the companies will enter into an agreement that would allow Zarubezhneft to explore and develop the southern continental shelf of Vietnam. Zarubezhneft is also likely to take part in the gas development project in Vietnam. The Russian company is expected to make a decision on the gas venture by December 2010.

Rusvietpetro is the joint venture between the companies. The company is expected to extract its first oil in the third quarter of 2010. In the next few years the company anticipates that its stated reserves will increase to over 100 million tons.

Mr. Gorshenev had earlier said that Zarubezhneft will sign a contract with its Vietnamese counterpart for developing the 09-1 block on the southern shelf of Vietnam sometime in the fall of 2010. In August, Petrovietnam submitted to the country’s government the principal technical and economic characteristics of the project and is now awaiting approval. 

It is likely that the contract between the Russian and the Vietnamese entities will be concluded during the planned visit of the Russian President to Vietnam. Dmitry Medvedev is expected to travel to the South Asian state in October.