Russian oil and gas player sets sight on Vietnam offshore wind farm

Russian state-owned oil and gas producer Zarubezhneft and Belgian marine contractor DEME Offshore have set their sights on construction of a 1 gigawatt wind farm offshore Vietnam after signing of a pact this week.

The Russian and Vietnam pair signed a memorandum of understanding covering the proposed Vinh Phong wind farm project, which Zarubezhneft said is estimated will cost $3.2 billion.

Zarubezhneft said it will share investment costs with a specially formed investment vehicle called DEME Concessions Wind.

Under the arrangement, the pair will hire oil and gas producing venture Vietsovpetro and DEME Offshore to manage the wind farm construction process, as both these companies “possess required technical and construction experience”, Zarubezhneft said.

Vietsovpetro, which operates several offshore oil and gas blocks in Vietnam, is a joint venture between Russian Zarubezhneft and state-run PetroVietnam.

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