To manage the oil field, PetroVietnam and the Russian Foreign Economic Union (Zarubezhneft) plan to set up a joint-venture company, tentatively named Rus-Viet Petro. PetroVietnam will contribute 49 percent of the joint venture’s total investment capital while the remainder will be provided by the Russian group.

This is the first time that PetroVietnam has bought an oil field abroad.

According to company representatives, PetroVietnam is considering buying one or more oil fields currently being offered to Vietnam by other countries and territories.

The company is also seeking to buy oil wells in Algeria and Azerbaijan and is evaluating the potential for drilling for oil in Madagascar, Cameroon, and in some South American countries. If negotiations go smoothly, PetroVietnam will establish joint ventures in these countries to ensure stable supplies of oil to the domestic market.

In 2007, PetroVietnam planned to produce one million tonnes of oil overseas, but it was not able to reach its target.

Since the country’s oil and gas potential is limited, PetroVietnam plans to manufacture petrol and oil products using only imported materials.