Entry into new projects
The Zarubezhneft JSC Corporate Development Strategy sets venturing into new oil projects as the basis for the Company’s future growth. The company is constantly working on expanding its assets portfolio and searching for new assets abroad.
Zarubezhneft JSC is using the following main principles to expand the geography of its activities:
- applying privately-developed technologies and competencies;
- building partnerships, primarily with state-owned oil and gas companies.
The Company’s is concentrating its focus on the search for new assets in its regions of strategic interests and the countries where Zarubezhneft JSC is traditionally present, primarily Vietnam. An agreement stipulating the key terms and conditions for the transfer of a share in the Block 09-2/09 PSA was signed in August 2018 that resulted in the distribution of shares as follows: PVEP – 30%, Zarubezhneft JSC –30 %, JV “Vietsovpetro” – 40%. The project operator is JV “Vietsovpetro”.
Another region where Zarubezhneft JSC can search for new projects is South America. The Company’s strategic interest is focused on establishing contacts with oil and gas companies in Ecuador and Argentina. In the reporting year, direct negotiations on a number of projects as part of the contacts established between Zarubezhneft JSC and the Ministry of Hydrocarbons of Ecuador, as well as negotiations with representatives of the Federal Energy Department of Argentina and the regional Rio Negro Province Energy Department were held.
To promote business development in the Middle East and North Africa, in 2018, the Company focused its activities on the Egyptian and Iraqi markets.
Although Iraq has historically been the Company’s country of strategic presence, this was suspended after the US invasion of Iraq in 2003. However, since 2012, Zarubezhneft JSC has gradually been restoring its position in this country.
African countries are becoming one of the priorities of business development. Successful project implementation will allow the Company to expand the geography of its presence and form a regional Company’s production center in Africa.
In terms of new assets in the Russian Federation and the CIS, Zarubezhneft JSC has also been actively assessing new facilities. The Company is focused on the fields and license areas in the Timan-Pechora basin, the Khanty-Mansiysk and Yamalo-Nenets autonomous districts, the Volga-Ural region, as well as the Republic of Kazakhstan.