Vietnam-Venezuela oil and gas JV begins production

[Viet]

Vietnam-Venezuela oil and gas JV begins production
Updated September, 28 2012 12:45:00
Vietnam News

HA NOI – (VNS) Petromacareo, a Joint Venture between Viet Nam and Venezuela, has started exploiting oil at the Orinoco oil belt with an initial daily output of 800 barrels.
The figure is expected to reach 40,000 barrels per day after one year of operations, according to the Venezuelan News Agency.

Petromacareo is extracting oil at the Junin 2 bloc in Venezuela's Orinoco oil belt, the world's largest oil reserve. The Junin 2 bloc is estimated to hold reserves that could fill 37 billion barrels. The joint venture has been allowed to process and trade oil and other oil products during the next 25 years.

This is one of the Viet Nam's biggest oil and gas projects abroad. It's reported that Petromacareo has planned to invest nearly US$3.9 billion in infrastructure, drilling wells and processing of oil by 2021. Its productivity has the potential to reach 200,000 barrels per day.

Last April, the Venezuelan State Oil Company and Vietnam National Oil and Gas Group (PetroVietnam) agreed to expand the Dung Quat Oil Refinery in Viet Nam to refine oil from Petromacareo. Venezuela is expected to export oil to Viet Nam by 2015. – VNS

Viet Nam-Venezuela joint venture begins exploiting oil - Economy - VietNam News

 

[Viet]

Thank you Mr Chavez!
We can join force and beat all imperialist enemies.

Venezuelean President Hugo Chavez(L) bids farewell to his Vietnamese counterpart Nguyen Minh Triet(R) at the presidential palace in Hanoi. Chavez wrapped up a visit to Vietnam (August 2006), hailing it as a model socialist state and praising it for the wartime defeat of the "US imperialist monster."

 

[Viet]

Venezuela commits to supplying Vietnam 2 mil barrels of crude oil per quarter
Hanoi (Platts)--24Apr2012/432 am EDT/832 GMT

Venezuela has committed to supplying Vietnam's sole crude oil importer PV Oil two million barrels of crude oil per quarter, PetroVietnam-run Petrotimes said Tuesday, quoting PetroVietnam's general director Do Van Hau.

The contracts will be implemented with relatively favorable terms, Hau added, without saying when the crude oil will be delivered.

A PetroVietnam official on Tuesday declined to comment on the timing of the delivery.

State-owned PetroVietnam is planning to expand its sole 6.5 million mt/year refinery at Dung Quat by nearly a third in five or six years. The refinery will then be able to refine crude oil from Venezuela and the Middle East, state media cited Nguyen Hoai Giang, general director at the refinery's operator BSR as saying earlier this year.

The Vietnamese and Venezuelan governments last week agreed to establish a joint venture to transport oil from Venezuela to Vietnam. They also planned to build oil cargo vessels of over 100,000 mt capacity each in Vietnam's Dung Quat Shipyard located near the Dung Quat refinery.

Meanwhile, the two countries have finished a joint study on the Maracaibo lake and are about to establish a separate JV to explore and produce crude oil from the lake basin, according to Hau.

There are many foreign oil companies jumping into Venezuela's lucrative oil sector. But it is not easy at all. Russian and Chinese ones, for example, have poured billions dollars in but have yet got any crude oil, Hau said.

PetroVietnam is confident with its upstream plans in Venezuela. Notably, output from the Junin 2 block is expected to bring the company 4 million mt of crude oil per year when it is fully operational, the general director added.

The Vietnamese and Venezuelan governments expect to produce first oil from their joint venture in the Orinoco Oil Belt's Junin 2 block in the third quarter of this year with initial output at 3,000 b/d, the Petrotimes newspaper said last Friday.

Drilling has started at the PDV-39 oil rig in Junin 2 last Thursday.

The output will be raised to 20,000 b/d by the fourth quarter of next year.

PetroVietnam currently has a 40% stake in the Petromacareo JV with Venezuela's state-oil company PDVSA, which owns the remaining 60%. The JV aims to produce extra-heavy crude and build a 200,000 b/d upgrader in the Junin 2 block.

PDVSA invested $3.899 billion in developing this block in 2011, while PetroVietnam plans to invest $1.825 billion during 2009-2014, according to the Vietnamese government last Thursday.

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