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Russia's president Vladmair Putin with Vietnam's president Truong Tan Sang. Image courtesy of the Kremlin.

Russia’s Rosneft and Vietnam’s state owned PetroVietnam reached an agreement Monday to create a joint venture for exploration work at two blocks on the Pechora Sea shelf in Russia.

Rosneft will hold a 66.67 percent stake in the joint venture and PetroVietnam will hold a 33.33 percent stake.

The joint venture will explore the Yuzhno-Russky and Zapadno-Matveevsky license blocks in the Pechora Sea.

The Pechora Sea is in northwest Russia and is part of the Barents Sea.

Overall recoverable reserves from the two blocks are estimated at 367 million tons of oil and 64 billion cubic meters of gas.

Five exploration wells will be drilled and seismic surveys will be conducted. The wells and surveys are expected to cost about $1.5 billion.

The first memorandum of understanding between Russia and Vietnam for joint hydrocarbons exploration in the Pechora Sea was signed in November 2013.

According to the U.S. Energy Information Association, liquid hydrocarbon fields in the Barents Sea are “relatively small” but producers can benefit from the area’s well developed transportation infrastructure.