Under the agreement, which was signed in Hanoi on March 29, PVEP will work as the manager for the project and will have a 51 percent share.

Covering an area of 4,682 sq.km, Block 42 in Phuc Quoc basin is seen as a lot holding considerable oil and gas potentials.

Speaking at the function, PetroVietnam General Director Do Van Hau said the contract manifests the close and effective cooperation between PetroVietnam and Russia’s Zarubezhneft through Vietsovpetro joint venture.

The PSC is the fifth contract that Vietsovpetro has engaged in Vietnam, following others in Bach Ho (White Tiger), Rong (Dragon) and Doi Moi oil fields.

Zarubezhneft General Director Sergei Kudryashov described Vietsovpetro as a bridge for the solidarity and friendship between Vietnam and Russia, while the newly-signed PSC further consolidates the effectively friendly and cooperative relations between the two nations.

The exploration and exploitation of Block 42 are expected to open new prospects for Phu Quoc basin and attract more stable investment in the area, contributing to the Vietnamese oil and gas sector’s development strategy and the national energy security programme.