Vietnam Could Produce Syncrude in Orinoco
Vietnam's national oil company PetroVietnam could perform E&P in Venezuela to manufacture synthetic crude from the Orinoco oil belt, Venezuela's state oil firm PDVSA said in a statement.
The Asian company would then process the crude in a refinery at home.
The two countries signed an energy agreement during Venezuelan President Hugo Chavez's recent visit to Vietnam. The deal includes provisions for "assessing E&P opportunities in both Venezuelan and Vietnamese oilfields," according to PDVSA.
In addition, the deal covers establishing refining, storage and terminals in Vietnam, marketing oil and related products in the Asia Pacific region and providing natural gas, according to PDVSA.
State-owned companies that Venezuela has invited to take part in new energy projects normally enjoy much better conditions than their private counterparts. For instance, the fields are directly awarded instead of being allocated through a costly bidding process.
Currently there are four heavy crude extraction projects in Orinoco. The crude is laden with metals and has 7.5-degree API and needs to go through an expensive upgrading process before it can be sent to a refinery. Once the extra-heavy crude is upgraded, it becomes synthetic crude.
Visit BNamericas to access our real-time news reports, 7-year archive, Fact File company database, and latest research reports. Click here for a Free two week trial to our Latin America Oil & Gas information service.
Operates 14 Offshore Rigs
Manages 26 Offshore Rigs
- Algeria Sends More Oil To Cuba As Venezuelan Supplies Fall (Jan 10)
- Venezuela's PDVSA At Risk Of Losing Bonaire Terminal Over Maintenance Delay (Dec 19)
- Paralysis At PDVSA: Venezuela's Oil Purge Cripples Company (Dec 15)
Company: PetroVietnam more info
- Vietnam Court Sentences to Death PetroVietnam Ex-Chairman in Mass Trial (Sep 29)
- Asia Oil Refinery Delays Favor Producer Case for Extending Output Cuts (May 22)
- Vietnam's Sole Refinery Plans to Sell 5-6 Pct Stake in IPO in Q4 (May 22)