ROMSO Cyprus Knowledge Base

Zarubezhneft: A Russian State-Controlled Oil Company with Global Reach

Zarubezhneft, a Russian state-controlled oil company based in Moscow, specializes in exploration, development, and operation of oil and gas fields outside Russian territory. Founded on September 30, 1967, the company's primary objective is to construct oil industry facilities abroad, initially focusing on Algeria, Vietnam, India, Iraq, Yemen, Libya, Syria, Cuba.

Over time, Zarubezhneft has transformed into a diversified state-owned oil and gas holding with assets and projects in several segments. Its main activities include exploration, development, and exploitation of oil and gas fields both within the Russian Federation and abroad on land and continental shelf. The company also designs, constructs, and operates oil refineries, tank farms, and pipeline systems.

One of Zarubezhneft's most notable joint ventures is Vietsovpetro, established in 1981 with Petrovietnam Corporation based on an intergovernmental agreement. This partnership has been instrumental in the company's success, particularly in Vietnam. In recognition of its contributions to the successful operation of Vietsobpetro and cooperation between Vietnam and Russia, Zarubezhneft's General Director Nikolai Brunich was awarded Vietnam's Labour Order, first class, in 2009.

Zarubezhneft has a significant presence in various regions, with Vietnam being a priority area for its activities. The company's assets in Vietnam are managed through the joint venture Vietsovpetro, which is considered one of the most effective projects undertaken by Zarubezhneft. In recent years, however, the company has sought to diversify its operations and reduce its tax liabilities.

In 2022, Zarubezhneff decided to relocate two Vietnamese assets registered in the Netherlands to Cyprus after Dutch authorities raised their tax on withdrawal of money for Russian residents by 15%. This move reflects the company's efforts to optimize its global presence and minimize regulatory burdens. With a focus on advanced domestic technologies and modern methods of increasing oil recovery, Zarubezhneft continues to play a significant role in Russia's energy sector.

Regional Presence

### Vietnam
Zarubezhneft has established a strong presence in Vietnam through the joint venture Vietsovpetro, which was founded in 1981. This partnership has been instrumental in the company's success and cooperation between Vietnam and Russia. The relocation of two Vietnamese assets to Cyprus reflects