Vietnam, Venezuela Set up PetroMacareo Oil & Gas JV
Vietnam and Venezuela signed a contract to set up PetroMacareo oil and gas joint venture in Caracas on June 29 for oil and gas production at Block Junin 2 of Venezuela's Orinoco Belt in Monagas State.
PetroVietnam Exploration Production Corporation (PVEP)-an affiliate of the state-run Vietnam Oil and Gas Group (PetroVietnam) and Petroleum Corporation (CVP)-an affiliate of Venezuela’s state oil company Petróleos de Venezuela SA (PDVSA) clinched the deal in the presence of visiting Vietnamese Deputy Prime Minister Hoang Trung Hai.
As a result, PVEP will hold a 40% stake in the PetroMacareo JV while CVP will own the rest to jointly produce and sell heavy oil at the Block Junin 2, which is 450km far from Venezuela’s capital city, Caracas, the government of Vietnam said on its website Thursday.
Under the 25-year JV contract with a maximal 15-year grace period, the two sides are expected to produce a combined 2.5 billion barrels of oil. Production output is forecast at 50,000 barrels per day at the initial production and will peak at 200,000 barrels or 10 million tons per year in 2015.
The investors plan to pour US$1.825 billion in oil and gas production project at the 247.8-sq.m block that has estimated crude oil reserves of 36.6 billion barrels.
Earlier, PVEP plans to start commercial oil production at Block Junin 2 in Venezuela in 2012. (chinhphu.vn)
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