Russian oil and gas firm Rosneft has clinched a contract to supply 96 million tons of oil to PetroVietnam Oil Corporation (PV Oil), a member of Vietnam National Oil and Gas Group (PVN).

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Delivery will take place until 2040 under the contract, which is part of the Russian company’s strategy to expand its presence in the Asia-Pacific region. However, both sides did not disclose the value of the deal.

The contract was signed at the 20th International Economic Forum in Saint Petersburg last week.

Speaking at the signing ceremony, Rosneft chairman Igor Sechin said thanks to the contract, Rosneft will provide energy for one of the dynamic countries in the Asia-Pacific region.

Last month, PVN and Rosneft inked a deal on expansion of cooperation between the two sides in Russia, Vietnam and third countries in the area of hydrocarbon exploration and production, processing, commerce and logistics, as well as staff training. They agreed to consider potential options for joint projects.

PVN chairman Nguyen Quoc Khanh and Rosneft chairman Sechin signed the deal during Vietnamese Prime Minister Nguyen Xuan Phuc’s visit to Russia.

Sechin said Rosneft was interested in expanding its Vietnam business operations, including refining, petrochemicals, commerce and logistics, having successfully worked with PVN in the exploration and production of hydrocarbons here in the country.

Rosneft and PVN have stakes in the Nam Con Son pipeline, which transports gas and condensate from the Nam Con Son basin to an onshore power generation complex. They are currently involved in an offshore gas and condensate production and exploration project off Vietnam’s coast.