OREANDA-NEWS. December 28, 2007. The year of 2007 was in many ways successful for Zarubezhneft. Significant developments have occurred, which are important for working out further growth strategy and forming investment policy of Zarubezhneft. In October of 2007, the stake in the Russian-Vietnamese Joint Venture Vietsovpetro was finally contributed to the charter capital of the Company, the press service of the company reports. Additional financial resources will be invested in new projects, profitable both for the government and Zarubezhneft.

Working and financial programs of Zarubezhneft for 2007 have been successfully carried out. For the nine months of 2007, Zarubezhneft, holding Russia’s stake in JV Vietsovpetro, transferred 400 million of US dollars to the federal budget; all in all during the years of existence of the Joint Venture more than 6 billion of US dollars were contributed to the budget of our country.

The agreement between Russia and Vietnam is being implemented with regard to continue cooperation between the two countries on the basis of reorganized JV Vietsovpetro after 2010 and establish with Vietnam National Oil and Gas Group (PetroVietnam) a new joint venture for participation in oil and gas field development in Russia and third countries.

Currently, Zarubezhneft and its Vietnamese and Japanese partners are developing Block 09-3 offshore Vietnam, where commercial oil reserves were discovered. Zarubezhneft is constructing field facilities in Uzbekistan and preparing other service projects for realization in this country including projects to enhance oil recovery. The Company is taking part in construction of oil and oil products terminal at the port of Ust-Luga, the Baltic Sea. The signed agreement to participate in field development in Turkmenistan is going to be implemented. Zarubezhneft is considering working opportunities in some countries of Asia, Africa and Latin America including participation in oil exploration, construction and modernization of oil refineries and oil recovery enhancement.

Yet another significant aspect of Zarubezhneft’s activities is fulfillment of the instruction of the Government of the Russian Federation to be an authorized organization for preparation and implementation of production sharing agreements in respect of oil and gas blocks and fields.

Zarubezhneft considers it necessary to boost works in the important area for innovative development of Russian fuel and energy complex – namely development and commercial introduction of modern oil recovery enhancement methods. In 2007 changes in Zarubezhneft’s top management have occurred. The former General Director Nikolay P. Tokarev had done all the best for the development of Zarubezhneft and strengthening its positions in the domestic and international oil markets.

The new management firmly intends to follow the policy of the previous team concerning introduction of effective methods of corporate governance, increasing scientific and production potential, expanding Zarubezhneft’s production activities and creating appropriate working and social environment for its employees.