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Russian prime minister Dmitry Medvedev and Vietnamese prime minister Nguyen Quoc Khanh. Image courtesy of the Russian government.

Russia’s Gazprom said Monday it will acquire a 49 percent stake in Vietnam’s Dung Quat refinery as part of a broader joint venture plan with PetroVietnam.

Gazprom will purchase its stake in the refinery, operated by Binh Son Refining and Petrochemical, for an undisclosed sum.

A timeline for the purchase has not been disclosed.

Dung Quat is currently the only oil processing facility in Vietnam.

Plans to modernize the Dung Quat refinery will boost its capacity from its current level of 6.5 million tons to 8.5 million tons per year.

The upgrades are also expected to “improve the efficiency of its technological processes enabling the plant to switch over to producing Euro-5 standard motor fuels,” Gazprom said.

Gazprom’s share of investment in the modernization project will be proportionate to its share in the plant.

The upgrades are expected to be complete by 2022, the Economic Times said.

The two companies also signed a memorandum to extend their collaboration on joint oil and gas exploration, production and development projects at the Dolginskoye field and the Severo-Zapadnyi (North West) licensed block in offshore Russia.

The companies will form a working group to create a list of priority oil and gas fields and agree on the basic terms of their partnership before signing further agreements.

The priority list is expected to be finished by October 2015.

Russian prime ministry Dmitry Medvedev and Vietnam prime minister Nguyen Tan Dung were present at the signing.