Conglomerate Keppel Corp's offshore and marine unit signed a shareholders' agreement with Russian oil firm Rosneft and Norwegian drilling equipment firm, MHWirth, to set up a Singapore incorporated joint venture company.

The company will establish a design and engineering center in the Russian Federation, with initial projects from Rosneft for work related to shallow water platforms, Singapore's Keppel Offshore and Marine said in a statement late on Thursday.

It will also seek work from other Russian and international customers.

Keppel O&M and Rosneft will have shares of 45 percent each in the joint venture, while MHWirth will hold 10 percent. The joint venture and the center will adhere to existing U.S. and European Union sanctions imposed on the Russian offshore oil and gas sector, it said.

The deal comes as Singapore's Prime Minister Lee Hsien Loong makes his first bilateral visit to Russia.

Vietnam

Earlier this week, Rosneft and PetroVietnam signed a cooperation agreement that provides for the expansion of cooperation between the parties in Russia, Vietnam and other countries in the area of hydrocarbon exploration and production (including offshore), processing, commerce and logistics, as well as staff training.

Rosneft and PetroVietnam are currently involved in the project of gas and condensate production and exploration offshore Vietnam where Rosneft Vietnam is the project operator. The project is based on a Production Sharing Agreement covering two gas condensate fields – Lan Tay and Lan Do. The fields are located 370 kilometers off the coast in the Nam Con Son basin with a sea depth of up to 190 meters.

Rosneft and PetroVietnam also have stakes in the Nam Con Son pipeline, which will transport gas and condensate from the Nam Con Son offshore basin blocks to an onshore power generation facility.

Japan

Early in May, Rosneft Chairman of the Management Board Igor Sechin took part in extend format meeting of Russian president Vladimir Putin and Japanese Prime Minister Shinzo Abe during which a wide range of issues concerning further development of Russian-Japanese business cooperation was discussed.

The importance of progress in oil supplies to Japan was emphasized: from spot transactions to supplies guaranteed by long-term contracts (based on effective practice of Rosneft’s cooperation with JX Nippon). At the moment about a third of all oil export from Russia to Japan is supplied by Rosneft.

Indonesia

In April, Sechin visited Indonesia to meet with the Energy and Mineral Resources Minister Sudirman Said, State-Owned Enterprises Minister Rini Soemarno and oil and gas company Pertamina President Director Dwi Soetjipto.

The officials discussed the prospects for joint projects in the field of crude and product supplies, logistics and infrastructure, Rosneft participation in oil refining in Indonesia, and the potential for Pertamina to step in as a shareholder in Rosneft's upstream projects in Russia.