Lukoil and Petrolimex could agree to long-term delivery of petroleum products to Vietnam
MOSCOW. Sept 16 (Interfax) - Lukoil and Vietnam's state oil corporation Petrolimex signed a memorandum of mutual understanding that includes the possibility of long-term contracts for the supply of Russian petroleum products to Vietnam, Lukoil said in a statement.
The memorandum, for example, foresees negotiations on long-term contracts for Lukoil's delivery of heating fuel starting form 2010. Total deliveries could reach up to 500,000 tonnes a year.
The companies also intend to hold negotiations for a long-term agreement on Lukoil's supply of diesel fuels with a crude content of 0.25% and 0.05%. Total supplies could reach up to 1 million tonnes a year. Both parties will discuss the possibilities of using Aframax class tankers owned by Petrolimex for these supplies to Vietnam.
Another item of negations will be the Russian company's long-term lease of Petrolimex's oil storage facility at a customs warehouse in Van Phong bay as soon as the facility is ready in 2011.
The memorandum also stipulates the exchange of information on possible investment projects in Vietnam that would be in the interest of both companies.
The document is binding for three years from the day of its signing and could be extended based on mutual agreement on both sides.
The company told Interfax that in-depth negotiations concerning petroleum deliveries and the leasing of the facility would commence at the end of October.
"The Asia-Pacific region presents a strategic interest for the company. Lukoil's trader, Litasco, has a representative office in Singapore. In addition, Lukoil is supplying petroleum products to China," a company representative said.
Petrolimex is the leading Vietnamese importer of oil and petroleum products.