26 November, 2023

Russia will be able to increase its presence in Vietnam’s hydrocarbon projects, in exchange for providing Rusvietpetro with MET benefits.

Russia and Vietnam are increasing cooperation in the field of hydrocarbons. Thus, Russia will be given the opportunity to expand its presence in the Vietnamese oil and gas sector. In return, the Russian Federation will provide tax benefits to the Russian-Vietnamese joint venture Rusvietpetro, Izvestia writes.

In particular, Russia will take part in the development of working fields in Vietnam and will receive support from the local joint venture Vietsovpetro, which provides almost a third of oil production in this Asian country.

In turn, for “Rusvietpetro” in Russia, payments on mineral extraction tax will be reduced — by almost 202 billion rubles until 2030. Such a decision will enable this joint venture to support and even increase oil production against the background of the fact that the company is working with assets at a late stage of development.