Vietnam and Russia have joined hands for crude oil production at the newly discovered site in the South China Sea. Vietnam-Russia joint investment project will offer approximately 1 billion dollars to Vietnam till 2032.
The state-owned PetroVietnam Exploration Production named Vietsovpetro and its Russian equivalent acting at an oil field site situated 160 km away from the southern coast of Vietnam.
The oil field is close to Vietnam’s largest oil field named Bach Ho also run by Vietsovpetro. The oil field is located outside the “Nine-Dash Line”, a region which is part of the South China Sea and also claimed by China. The daily yields are estimated at 230 barrels.
Vietnam’s Vietsovpetro owns a 55 percent stake in the field along with PVEP at 30 percent and Bitexco Group, Vietnam’s real estate holds 15 percent stake. As per media reports, this oil field is the first new site of Vietnam discovered after a long period of time.
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Vietnam’s Bach Ho first started its operation in the year 1986 and emerged as one of Asia’s leading oil producers. After the rise in production until 2004, the country’s oil production started falling as the production started declining rapidly. That’s the reason for the increase in Vietnam’s crude oil imports.
Currently, Vietnam is planning to discover crude oil in its exclusive economic zone located in the South China Sea where many regions fall under the Chinese regime. This has resulted in the collapse of multiple projects in the South China Sea.