Russian heavyweight Zarubezhneft seeks to build energy center in Vietnam

Zarubezhneft, a wholly state-owned oil & gas group of Russia, wants to develop an energy center in Vietnam, as it seeks to expand into other fields including energy and minerals.

CEO Sergei Kudryashov disclosed the information at a meeting with Prime Minister Pham Minh Chinh in Hanoi on Thursday.

In response, Chinh said Vietnam welcomes Zarubezhneft’s participation in new energy and oil & gas projects, in addition to its existing activities under the Vietsovpetro joint venture. “Vietnam always facilitates the operations of Russian oil & gas companies, including Zarubezhneft,” he noted.

Oil & gas cooperation is a key pillar in the Comprehensive Strategic Partnership between Vietnam and Russia.

Zarubezhneft has worked with wholly state-owned Petrovietnam for more than 40 years through joint ventures Vietsovpetro in Vietnam and Rusvietpetro in Russia to conduct geological exploration and oil & gas production.

Vietnamese ministries are reviewing proposals by Petrovietnam and Zarubezhneft aimed at creating more favourable conditions for expanding the activities of Vietsovpetro and Rusvietpetro.

Chinh said joint projects between Petrovietnam and Zarubezhneft have generated economic benefits, strengthened strategic trust, supported energy security, and contributed to workforce training and technology capacity in Vietnam.

He said the Vietnamese government consistently supports the joint ventures, reflected through multiple intergovernmental agreements and protocols.

The Vietnamese government encourages the partners to continue expanding investment based on efficiency, balanced interests, and compliance with Vietnamese law. The cabinet leader urged both sides to maintain dialogue and seek measures to improve the joint ventures' performance and resolve operational bottlenecks.

He called on Zarubezhneft to further support Rusvietpetro’s activities in Russia, including expanding operating areas and acquiring new oil & gas fields to maximize existing infrastructure, technology, and personnel.

Chinh proposed improvements to logistics, taxes, and fees when necessary, as well as measures to enhance Vietsovpetro’s efficiency, maintain reasonable output, and invest in exploration of new promising blocks.

Both sides should also strengthen cooperation in LNG; supply chains; LNG storage and terminals; and technology for depleted fields, deep and complex drilling. They may also explore partnerships in renewable energy, hydrogen, new materials, high-quality workforce training for Vietnam, and oil & gas services in third countries.