Zarubezhneft is the oldest enterprise in the oil and gas industry of Russia with wide experience of foreign economic activity in different parts of the world.

Zarubezhneft Joint Stock Company (1988-1992 - All-Union Industrial Association, 1992-1995 - Russian Foreign Economic Association) was established in 1967 under the Ministry of Oil Industry of the USSR in accordance with the instruction of the Council of Ministers of the USSR.

According to the Decree of the President of the Russian Federation Vladimir Putin ¹ 137 dated February 3, 2004, State Enterprise Russian Foreign Economic Association Zarubezhneft was transformed into a public joint stock company with 100 % shares held in the federal ownership. The founder of Zarubezhneft JSC is the Russian Federation represented by the Federal Agency of Federal Property Management.

Since it was established Zarubezhneft has been engaged in preparing and implementing integrated projects for geological exploration and development of offshore and onshore oilfields abroad, constructing oilfield facilities, carrying out works for oil recovery enhancement, as well as supplying equipment and materials for oil and gas facilities in different parts of the world.

Zarubezhneft's main objective has always been to ensure Russian national interests on the world energy market by participation in foreign oil and gas projects, economically attractive to our country.

Zarubezhneft has accumulated considerable experience in preparing and implementing oil and gas projects abroad. During Soviet times the Company actively participated in the implementation of projects in the Middle East, South East Asia, Africa, particularly in Algeria, Vietnam, India, Iraq, Iran, Yemen, Lybia, Syria, Cuba. In a number of these countries key oil industry facilities were built with the participation of Zarubezhneft's specialists.

In Iraq, for instance, North Rumaila, the first national oil and gas producing field was constructed and commissioned in 1972, later the South Rumaila and West Kurna (1st stage) oilfields were constructed. In Syria the largest oilfield - Ruhmelan - was developed. In Iran in the beginning of 1990-s Zarubezhneft carried out engineering and geological surveys in the offshore areas of the Caspian Sea and drilled an exploratory well to a depth of 6000 m. In Yemen Zarubezhneft as a general contractor participated in constructing and commissioning of the West Aiyad oilfield in late 1980-s - early 90-s. In Lybia in 1970-1975 the Company's specialists carried out oil and gas reserves assessment as well as development analysis for 35 new oil and gas fields. In 1979-1987 123 wells were drilled in the Sarir and Nafura fields, Zarubezhneft acted as a contractor. In 1985-1986 feasibility studies for additional exploration and pilot production on 2 blocks of the Hamada oilfield were prepared.

In 1977-1981 in Angola Zarubezhneft participated in a number of projects for hydrocarbon exploration, oilfield development, oil production and refining. In Algeria the Company prepared an integrated development program for the country's oil industry, as well as technological development schemes for the Hassi-Messaoud, Rourd El-Baghel, Zarzaytin oilfields. In the northern part of the Algerian Sahara 300 wells were drilled. More than 50 scientific studies were conducted, geological and geophysical data were summarised and prospect areas assessed.

Zarubezhneft's most effective project abroad is the joint venture Vietsovpetro, established in 1981 on a 50-50 basis with Vietnam Oil and Gas Corporation Petrovietnam under an Intergovernmental agreement. Vietsovpetro JV retains its firm position among the world's top ten most effective oil producing companies. Its annual production offshore Vietnam amounts to 7-8 mln. tonnes of crude oil.

The activities of Zarubezhneft in Vietnam are not confined to the participation in Vietsovpetro. JSC Zarubezhneft, Vietnam Oil and Gas Corporation Petrovietnam and Idemitsu (Japan) are developing block 09-3 offshore South Vietnam where commercial oil stock has been disovered. In this project Zarubezhneft holds 50% share.

Since 2007 the Company has strengthened its positions in the world oil and gas market and expanded the area of operations by starting the realization of some new projects abroad.

Thus in the Republika Srpska (Bosnia and Herzegovina) «Zarubezhneft» has been reconstructing three oil and gas enterprises of the Republika - oil refinery “Bosanski Brod”, factory producing motor oil in Modrica and petrol station chain of the company «Petrol».

After almost 20-year break cooperation with Cuba has been successfully renewed. As a result of one year work, in autumn of 2009 four geologic exploration and field development contracts in four blocks were signed with the state company “Cubapetroleo”. The contracts on the basis of Production Sharing Agreement are effective till 2034. This event is very significant for Russia because long-term contracts in oil and gas sphere haven’t been signed with Cuba for more than 20 years. The contract of oil recovery enhancement at the Cuban oil field “Boca de Jaruco” is being prepared by «Zarubezhneft».

During the period 2006-2009 «Zarubezhneft» achieved essential success in the existing projects in Vietnam. Important contracts and agreements that laid the basis for long-term cooperation with the Vietnamese partners were signed with Oil and Gas Group of Vietnam «Petrovietnam». Thus in 2006 during Russian President’s visit to Vietnam the parties decided to continue joint work on the basis of JV Vietsovpetro to be reorganized in 2010. JCS Zarubezhneft and Petrovietnam Oil and Gas Corporation came to an agreement to establish a new joint venture for developing oil-gas fields in Russia and third countries. And on September 27th, 2008 in the presence of the Presidents of two countries Dmitry Medvedev and Nguen Minh Triet the Minister of Industry and Trade of the Russian Federation Viktor Christenko and the Minister of Industry and Trade of the Socialist Republic of Vietnam Vu Huy Hoang signed Inter-governmental agreement on further cooperation in the field of geological survey and oil and gas production on the basis of the joint venture Vietsovpetro, which stipulates the reorganization of the joint venture since December 31st, 2010 into a limited company Vietsovpetro with two shareholders – Zarubezhneft JSC and Oil and Gas Group Petrovietnam – with participation interest of 49% and 51% respectively.

«Zarubezhneft» plans to start development of Block 21 on the continental shelf in the Caspian Sea in Turkmenistan together with IGC «Itera». As agreed between companies «Zarubezhneft» will get 51 % in the project.

With the view of diversifying its activities the Company has started works in Russia, which is not the traditional region of Zarubezhneft's operations.

In the beginning of 2008 the company contested for the right to use natural resources for geological survey, exploration and production of hydrocarbons in the Central Khoreyver Uplift (CKU) blocks 1, 2, 3, 4 in the Nenets Autonomous Area, and in May of that year won the auction

In the Joint Declaration of the Presidents of the Russian Federation and Vietnam on further cooperation in geological exploration and production of oil and gas dated 20th November 2006 stresses the necessity to work through the matters of interaction of the two countries not only on the territory of Vietnam, but also on the territory of the Russian Federation and other countries. In order to ensure the participation of JSC “Zarubezhneft”, OGC “Petrovietnam” and JV “Vietsovpetro” is such projects, a joint company “Rusvietpetro" was established in summer 2008. According to anticipated plan at the end of 2010 joint venture should reach production capacity of 450 thousands tons of oil, in 2011 this figure supposed to be raised to 2 millions of tons.

The country's leaders have always paid special attention to Zarubezhneft and to its international projects highlighting the strategic importance of foreign economic activities in oil and gas sector. The above mentioned Presidential Decree dated 03/02/2004 ¹ 137 is another confirmation to it. Under the Decree the assets of two leading Russian institutes - VNIIneft named after Academician A.P.Krylov and Giprovostokneft were included into the structure of Zarubezhneft JSC. The consolidation of material, financial and human resources of these organizations within the structure of Zarubezhneft will allow to substantially expand its areas of activity and the scope of works, to enhance their quality, and as the result of it to increase contributions to the state budget.