Petrovietnam to Seek JV with PDVSA

Vietnam's government will allow its state oil company Petrovietnam to create a JV with Venezuela's state oil company PDVSA, newspaper El Universal reported.

Petrovietnam expects to receive an investment license after completing negotiations with PDVSA, reported the newspaper. The JV will produce crude in the Orinoco belt's Junin 2 block in Venezuela. The two countries signed an energy agreement during Venezuelan President Hugo Chavez's visit to Vietnam in late 2006.

Nong Duc Manh, head of Vietnam's communist party, was last month in Caracas, where Chavez said the two countries could work together in E&P and refining.

Petrovietnam has agreed with Cuban state oil company Cupet jointly to explore for oil in the Gulf of Mexico. Petrovietnam's average daily domestic production comes to 315,000b/d, reported El Universal.

Visit BNamericas to access our real-time news reports, 10-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.