PetroVietnam to Work in Nenets

Zarubezhneft on Tuesday confirmed plans to join forces with Vietnam's state-owned oil producer, PetroVietnam, in developing Arctic fields in Russia.

A joint venture will be created to develop four blocks in the Nenets autonomous district, Zarubezhneft, also a state-owned company, said in a statement. A 51 percent stake in the venture will go to Zarubezhneft, with the rest belonging to PetroVietnam, the companies said.

PetroVietnam, Southeast Asia's third-largest energy producer, said Monday that the venture would be set up this week, Bloomberg reported.

Zarubezhneft, which was set up by the Soviet Union to seek oil projects abroad, said it won rights for the fields, estimated to hold 78 million tons of recoverable crude, last week. It will be the company's first oil production project in Russia.

The joint venture will also seek to develop fields in third countries, Zarubezhneft said.