VietNamNet Bridge – The Russian partner inVietsovpetro JV has proposed to reduce the personnel of Vietsovpetro to under5,000 people from the current number of 7,200 over the next five years.

Tu Thanh Nghia - General director of Vietsovpetro

The information was revealed by Mr. Tu Thanh Nghia, CEO of Vietsovpetro, the largest and most effective Vietnam - Russia oil and gas JV in Vietnam, with revenues of over $66 billion as of mid-2015 on Nang Luong Moi (New Energy) newspaper, the mouthpiece of the Vietnam Oil and Gas Association on February 19.

Nghia said this was a big challenge for Vietsovpetro. The JV is working on the plan and will submit it to the Vietnam Oil and Gas Group (Petro Vietnam) for approval.

He also said that in 2015, Vietsovpetro merged and dissolved two of its 17 enterprises.

The Vietsovpetro top leader also supported the idea of closing some oil wells if the oil prices keep falling.

According to the VNR500 (Top 500) ranking, Vietsovpetro, headquartered in the southern city of Vung Tau, is Vietnam's 5th largest company.

It was established in 1981 under an inter-governmental agreement between the JSC Zarubezhneft of the Soviet Union and PetroVietnam, with each side holding half of stake.

On December 10, 2010, VietsovPetro agreed to extend its cooperation with JSC Zarubezhneft for 20 years until 2030. As per the new arrangement, PetroVietnam will hold a 51% stake in the joint venture with the Russian company holding 49%.