Government commits to backing oil and gas ties with Russia hinh anh 1Prime Minister Nguyen Tan Dung (left) and Zarubezneft General Director Sergey Kudryashov (right) (Source: VNA)
Prime Minister Nguyen Tan Dung has committed all possible support to oil and gas cooperation between Vietnam and Russia as well as between their national oil and gas companies – PetroVietnam and Zarubezneft.

During a reception in Hanoi on September 25 for Zarubezneft General Director Sergey Kudryashov, the PM expressed support for the two companies’ proposal to expand oil and gas survey and exploration in the two countries’ new blocks, adding that he has requested accelerating negotiations to promptly sign an inter-governmental agreement on oil and gas production joint-venture.

He also thanked President Vladimir Putin and Prime Minister Dmitry Medvedev for their support of oil and gas collaboration between Vietnam and Russia, including offering tax incentives for Rusvietpetro’s operation in several blocks in Nhenhexky autonomous region.

Underlining the effective coordination between Zarubezneft and PetroVietnam with their successful joint-ventures Vietsopetro and Rusvietpetro, Kudryashov affirmed that Zarubezneft is keen on a strategic and long-term cooperation with PetroVietnam.

He also wished the two countries will sign an inter-governmental agreement on oil and gas survey and exploration as early as possible.

According to Kudryashov, Rusvietpetro has launched a successful oil and gas project in northern Russia’s Nhenhexky autonomous zone.

Since September 2010, Rusvietpetro has pumped 8.78 million tonnes of oil, raking in close to 4.6 billion USD in revenue and 1 billion USD in after-tax profit. It plans to put two more oil fields into operation and double its total capacity.

The Russian government is also ready to provide 1.2 billion USD in natural resource tax waive and reduction for Rusvietpetro, he stated.-VNA