Under the deal, Jatoil will progressively increase its ownership of the JV Green Energy Joint Stock Company by investing a total of $3.25 million to grow up to 5000 hectares of jatropha.

"Crude jatropha oil production will bring a source of cost-effective fuel to Vietnam, leading to greater energy security, local employment opportunities and environmental benefits," Jatoil executive chairman Mike Taverner said.

The development in Vietnam adds to Jatoil's portfolio of Asian projects. The company has a 50% stake in Indonesia's PT Biodiesel Austindo and has begun planning its Indonesian jatropha production.