PetroVietnam, Venezuela Sign US$11.4 Bln Oil E&P Deal

The state-owned oil monopoly PetroVietnam group and Venezuela’s state-run Petroleos de Venezuela S.A (PDVSA) November 20 reached an agreement worth US$11.4 billion to produce and explore for oil, the Thanh Nien Daily newspaper quoted PetroVietnam's CEO Dinh La Thang as saying.

 

Under the 25-year contract signed between the two sides on the occasion of Vietnamese President Nguyen Minh Triet's visit to Venezuela, PetroVietnam will contribute nearly US$5 billion or 40 per cent of the total investment and Venezuelan partner will contribute the rest.

 

Of the sum, about US$4 billion will be used to build a plant to upgrade crude oil produced at oilfields in Venezuela, Thang said, adding that PetroVietnam will transport upgraded crude oil to a refinery in Vietnam.

 

PetroVietnam is planning to deduct as much as 10 per cent of its annual revenues to establish a fund with an aim at furthering oil exploration at home and aboard in the circumstance of declining production at Bach Ho, the country's biggest oilfield.

 

Vietnam produced 10.76 million metric tons of crude oil in the first nine months this year, down 67.6 per cent on year. (Thanh Nien Daily, GSO Sept 2008)