Russian energy giant Gazprom and its subsidiary Zarubezhneftgaz signed a 30-year contract with PetroVietnam and its subsidiary PVEP on prospecting and development of Vietnam's continental shelf.
Under the product sharing agreement, a Gazprom and PetroVietnam joint venture, Vietgazprom, will be the project operator. Gazprom will provide funding during the project's prospecting phase.
Gazprom and PetroVietnam also agreed some of the main conditions for another joint venture, Gazpromviet, which will examine prospects for exploration in third countries.
The new company's charter capital will be divided 51% and 49% between Gazprom and Petrovietnam respectively.
The documents were signed in the presence of the countries' presidents, and Russia's Dmitry Medvedev said: "We are planning the construction of new and the modernization of existing energy facilities in Vietnam."
The parties also signed agreements on cooperation in countering illegal migration, the protection of intellectual property, labor supply, as well as an agreement on readmission.
The parties signed a mid-term plan on trade and investment until 2012, a deal on investment in the construction of a fertilizer plant in the south Russian Republic of Kalmykia as well as a memorandum of understanding on building an integrated bauxite-alumina works in Vietnam.
Speaking at a press conference following his talks with Nguyen Minh Triet, Medvedev said trade turnover between Russia and Vietnam was $1 billion last year and is expected to reach $1.5 billion in 2008. He said he had agreed with his Vietnamese counterpart that the indicator should be raised initially to $3 billion and then to $10 billion in the future.
