The Russian Conglomerate’s Strategic Investment in Vietnam: Unlocking the Ultimate Secrets to Extract “Black Gold”

On May 11th, General Secretary To Lam met with representatives of prominent businesses in the Russian Federation, including Mr. Kudryashov Sergei Ivanovich, CEO of Zarubezhneft.

During the meeting, Mr. Kudryashov shared that Zarubezhneft is currently collaborating with the Vietnam Oil and Gas Group (PVN) on oil and gas exploration projects in the Vietnamese continental shelf and the Russian Federation. He affirmed that these projects are progressing well and delivering positive results.

Additionally, the two parties are jointly developing projects related to natural gas and LNG terminals to establish a modern liquefied gas supply chain serving domestic and regional demands. In parallel, they are promoting research and implementation of clean energy projects, such as offshore wind and green hydrogen.

Energy and oil cooperation are among the most crucial pillars in the Comprehensive Strategic Partnership between Vietnam and Russia. Their collaboration in the oil and gas sector is a vivid testament to the fusion of Russian intellect and technology with Vietnam’s development aspirations and determination.

Advanced Oil Extraction Technology

Zarubezhneft is a Russian state-owned oil and gas company operating in exploration and production in Russia and several other countries, including Cuba, Uzbekistan, Indonesia, Egypt, Bosnia, and Herzegovina. The company has a rich history of executing international projects worldwide.

Zarubezhneft’s specialty lies in developing complex onshore and offshore fields using maximum reservoir recovery methods. They are implementing a comprehensive innovative development program, introducing modern technologies to enhance oil recovery and geological exploration.

In Vietnam, Zarubezhneft is a contractor in several significant oil and gas contracts, including Block 09-2/09, Block 09-1 (Vietsovpetro), Block 04-3, and the upcoming development of the Swan-Crane Field, Block 12/11.

In 2024, Zarubezhneft officially took over the operatorship of Block 11-2 (with a 75% participation rate) from the Korean consortium (KNOC) and played a crucial role in developing and connecting Blocks 11-2 and 12/11 through the signing of a framework agreement for optimization of costs and utilization of the potential of these two oil and gas blocks.

One of Zarubezhneft’s standout features is its oil-enhancing technology, developed in collaboration with Kazan Federal University (Volga Region). By employing catalytic hydrocracking technology, Zarubezhneft has nearly halved the ratio of steam injected into the extracted oil compared to similar projects in other countries. This technology, used for on-site catalytic hydrocracking in the oil refining process, is patented.

Continuous Expansion

Since 2014, Zarubezhneft has been gradually developing its performance management system, fully integrating continuous improvement tools following the PDCA cycle (Plan-Do-Check-Act).

In recent years, the company has significantly expanded its oil and gas exploration and production activities to several other blocks on the Vietnamese continental shelf, achieving notable results. In 2016, the Thien Ung condensate field was brought into production in Block 04-3, and in 2019, the promising Beluga field was commissioned (Block 09-3/12). In 2020, the operatorship of Block 09-2/09 was transferred to the Vietsovpetro joint venture.

The oil-bearing capacity of Block 16-1/15, located west of the Cuu Long Basin in the Vietnamese continental shelf, 80 km southeast of Vung Tau city and adjacent to Blocks 09-1 and 12/11, has also been confirmed. The latter is situated 350 km southeast of Vung Tau city.

With its unique capabilities and experience, JV Vietsovpetro offers high-quality services to Vietnamese and international partners, ranging from laboratory research to the design, fabrication, and installation of offshore oil and gas facilities.