| Publication |
2012.
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| Summary/Abstract |
International Affairs: The top audit bodies of the Russian Federation and the Socialist Republic of Vietnam have audited two Russian-Vietnamese oil exploration and production companies - Vietsovpetro based in Vietnam and Rusvietpetro based in Russia. Their findings were discussed in Hanoi on December 5, 2011 by delegates of the Russian Audit Chamber and Vietnam's State Audit who signed a joint statement. Aleksei Alekseevich, you led the Russian team. Could you describe the importance of the two companies for economic cooperation between Russia and Vietnam?
A. Kuz'mitsky: The intergovernmental agreement on founding the joint company, Vietsovpetro, for geological exploration and production of oil and gas on the continental shelf in the south of Vietnam was signed back in 1981. Commercial production began there in 1986. Vietsovpetro produces the greater proportion of the country's stock-tank oil. Cooperation under the Vietsovpetro umbrella was extended under the agreement signed on July 16, 1991, and it was further extended until the end of 2030 under the agreement that went into effect on January 1, 2011. The latter accord set the Russian participation in the project at 49% and the Vietnamese participation at 51% against the earlier fifty-fifty arrangement. Even so the project is exceptionally profitable to Russia. The joint audit by the Russian Audit Chamber and the State Audit of Vietnam confirmed the earlier assessment of Vietsovpetro as a highly efficient company with low production costs.
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