A memorandum of understanding has been signed between both the company to extend their collaboration on joint oil and gas exploration, production and development projects on the Pechora Sea shelf at the Dolginskoye field and the Severo-Zapadnyi (North West) licensed block.
In addition to creating a combined working group of experts, the two firms will create a list of priority oil and gas fields by the end of October 2015 and agree the basic terms of the partnership before further agreements are signed.
The projects will be implemented through joint ventures between Gazprom Neft and Petrovietnam, in which the stakes of each party will be negotiated.
The companies also signed a document involving provisions of an agreement allowing Gazprom Neft to acquire a share in the Vietnamese Dung Quat refinery.
Gazprom Neft will have exclusive rights to negotiate and acquire Petrovietnam’s shares in the refinery, during the period set out by the agreement.
As per the agreement signed in November 2013 between Gazprom Neft and Petrovietnam, Gazprom Neft plans to acquire a 49% stake in the refinery and to participate in the refinery modernization program.
The refinery is owned and operated by Binh Son Refining and Petrochemical company.
In addition to improving the efficiency of its technological processes to allow to produce Euro-5 standard motor fuels, the Dung Quat refinery modernization program will increase its capacity from the existing 6.5 million tons to 8.5 million tons per year.
Financial terms of the deals between the two companies were undisclosed.
Image: Dung Quat oil refinery. Photo: courtesy of PetroVietnam.
