Under the $245 million contract, Vietsovpetro will be the primary contractor for the pipeline, which will connect the PM3 offshore deposit, run by PetroVietnam and Malasian company Petronas, with a power plant in the An Khanh village in the Ca Mau province.
The 325 kilometer-long pipeline, with an annual design capacity of 2 billion cu m, will include a 298-kilometer offshore segment and a 27-kilometer land segment, and is expected to be operational in late 2006.
Vietsovpetro is the largest Russian-Vietnamese joint venture in Vietnam, accounting for 70% of the country's total crude oil production. The company extracted eight million metric tons of crude and 1.5 billion cu m of petroleum gas in the first nine months of 2005. It has forecasted its 2005 revenue at $4.4 billion.