Russia-Vietnam joint oil venture cuts output 12% in 2008

MOSCOW, December 4 (RIA Novosti) - Total crude output in 2008 by the Russian-Vietnamese joint oil venture Vietsovpetro will reach 7.7 million metric tons (56 million barrels), a drop of 11.5%, year-on-year, the Russian partner said on Thursday.

Vietsovpetro was established in 1981 on a parity basis between Russia's Zarubezhneft and Vietnam's oil and gas company PetroVietnam. The JV launched crude oil production on Vietnam's southern shelf in 1986.

As of December 2, Vietsovpetro met its 2008 plan for crude output producing 7.1 million metric tons (52 million barrels) and will make every effort to produce an additional 600,000 metric tons (4.4 million barrels) by the end of the year, Zarubezhneft said.

In 2007, Vietsovpetro produced 8.7 million metric tons (63.8 million barrels).

Since its establishment, Vietsovpetro has proved to be one of the largest and most effective joint ventures in Vietnam, accounting for about 65% of the country's oil production.