In 2007 JSC “Zarubezhneft” celebrated its 40 years anniversary. A unique experience had been accumulated in different areas of the World, key oil facilities constructed in more than 30 countries, including Algeria, Syria, Iraq, Vietnam, Libya, India, Yemen, Cuba.

The most effective project of Zarubezhneft for more than 27 years is Russian-Vietnamese Joint Venture “Vietsovpetro”, established on the basis of Inter-Government Agreement. JV participants, on parity principles, are JSC “Zarubezhneft” and Oil&Gas Corporation “Petrovietnam”.

One of the best shore supply bases in South East Asia had been created in JV “Vietsovpetro” for on-shore construction and off-shore installation of processing and well-head platforms for drilling and oil and gas production. For development of White Tiger and Dragon off-shore fields twelve fixed and ten well-head platforms had been constructed, more than 350 km of under water pipe lines of different purposes had bee laid, three CALM units had been installed for export oil offloading. The enterprise owns two semi-submersible drilling rigs, more than twenty fleet units, including derrick barges, fire-fighting, diving support and tug/supply vessels. A united low-pressure gas gathering system had been built, gas utilization coefficient is almost 95%.

During the period of JV operations 67 thousand line kilometers of 2D and 3168 square kilometers of 3D seismic had been acquired. 62 prospecting and exploration wells and 295 production wells had been drilled with overall meterage of 224 thousand and 1239 thousand meters respectively.

Currently cumulative production from White Tiger and Dragon fields has reached 170 million tons of oil. In 2007 production was 8,7 million tons of oil.

With the purpose to increase its resources base JV is conducting prospecting-exploration operations in Block 04-3, which have already proved Block’s potential. Resources of the Block are estimated as of 162 million tons of oil equivalent.

As of now, JV “Vietsovpetro” is considered as one of the most economically efficient oil producing enterprises in the World and delivers to Russian budget more than 500 million USD annually.

JV “Vietsovpetro” operations under Inter-Government Agreement on Cooperation in the Field of Oil and Gas Exploration and Production on the Continental Shelf of Southern Vietnam of July, 16th, 1991, expires in 2010. However, after consultations the Parties have come to the conclusion, that tremendous potential, acquired during the years of joint activities, should be further utilized for the benefit of both countries. A Joint Declaration of the President of Russian Federation and the President of Vietnam on intentions to continue cooperation after 2010 was adopted in November, 2006. The issue of JV “Vietsovpetro” reorganization into limited liability company with two participants – JSC “Zarubezhneft” and Oil&Gas Company “Petrovietnam” – is practically settled.

In the abovementioned Joint Declaration of the President of Russian Federation and the President of Vietnam on further cooperation in the field of oil and gas exploration and production of November, 20th, 2006, it is pointed out, that the aspects of joint cooperation between Russia and Vietnam should be worked out not only for Vietnam, but also for Russia and third countries. With the purpose to provide conditions for JSC “Zarubezhneft” and Oil&Gas Company “Petrovietnam” participation in the projects in Russian Federation and third countries a joint company “Rusvietpetro” had been established.

Long-standing relations with Oil&Gas Company “Petrovietnam” within the frames of JV “Vietsovpetro” have enabled Zarubezhneft to build up the basis for large scale long-term cooperation with Vietnam. Another successfully evolving joint Zarubezhneft and Petrovietnam project, this time with participation of the Japanese company “Idemitsu”, is development of Block 09-3 on the Southern Vietnam shelf, where recently commercial oil reserves were discovered. Currently, Block 09-3 development is one of priority areas of the company’s activities.

However, Zarubezhneft interests are concentrated not only on Vietnam. The company is studying new contracts on providing servicing operations in North-Eastern states of India. Zarubezhneft is a permanent participant of tenders on rendering services, realization of scientific-research and other activities in oil and gas sphere, which are conducted by ONGC and Oil India Ltd.

Zarubezhneft is a co-owner of three enterprises, located in Serbian Republic – oil refinery “Bosanskiy Brod”, motor oil plant in Modrich and distributing company “Petrol”, which owns 78 filling stations. After completion of reconstruction by the end of 2009, the capacity of “Bosanskiy Brod” refinery shall reach 4,2 million tons of oil products. Funds shall also be invested in reconstruction of filling stations, owned by “Petrol”.

Zarubezhneft is studying opportunities for establishing joint ventures with oil and gas enterprises in Angola, Libya, South America states – Cuba, Argentine – for prospecting and exploration of oil fields, construction and renovation of oil refineries, oil recovery increase, equipment and materials supply.

Zarubezhneft interests cover also CIS countries, where currently a number of contracts are under implementation or in the state of finalization. In particular, in Uzbekistan, within the frames of the contract, operations on oil production stimulation in ten wells are under way at North Urtubulak and Kruck fields; signing of new service contracts is planned.

An agreement with Turkmenian government for exploration and subsequent development of discovered fields in three offshore blocks, located in Turkmenian sector of Caspian shelf, is under preparation. For project realization a joint company “ZarIT” had been established in which, apart from Zarubezhneft, Rosneft and ITERA also participate.

Today, priority targets of Zarubezhneft are: provide a stable evolution of existing projects and tap new hydrocarbon markets, increase the company’s scientific-technical potential, accelerate activities on application of modern oil recovery enhancement methods.