Russia’s Gazprom Neft and Vietnam’s Petrovietnam formed a joint venture Tuesday to develop an offshore Russian Arctic oil field.
The joint venture will develop the Dolginskoye field located near Russia’s first Arctic field, Prirazlomnoye.
Reserves at Dolginskoye are currently estimated at 1.5 billion barrels of oil.
The field is located in the Pechora Sea, about 68 miles off the mainland coast.
Under the deal, Gazprom will also supply EPSO-blend crude to Vietnam.
Gazprom finished an exploration well at Dolginskoye earlier this month.
The well was drilled to a total depth of 11,482 feet in the northern part of the field and abandoned in early November.
Prior to the adoption of western sanctions against Russia Houston-based Schlumberger and UK-based Weatehrford had performed some operations at the Dolginskoye.
Gazprom Neft, the oil arm of state owned gas giant Gazprom, is currently drawing up development plans and could start drilling as soon as 2015, Reuters said.
Earlier this month, Russian officials said the country’s oil and gas industry was looking to build partnerships with countries that haven’t adopted sanctions.
Vietnam has not adopted any sanctions against Russia.