Vietnam, Venezuela to Jointly Develop Junin-2 Block

HANOI (Dow Jones Newswires), June 30, 2010

Vietnam and Venezuela have signed a contract to set up a joint venture to develop the offshore Junin-2 oil and gas block, the government of Vietnam said Wednesday.

Vietnamese Deputy Prime Minister Hoang Trung Hai led a delegation that arrived in Caracas Tuesday to sign the contract, which will help boost cooperation in oil and gas production between the two countries, the government said in a statement posted on its website.

The PetroVietnam agreement is the latest of a string of multibillion dollar joint ventures that cash-strapped Venezuela has signed this year with major foreign companies to develop its huge reserves of mostly heavy crude oil.

Vietnam will also consider the participation of Venezuela in a project to expand its sole Dung Quat refinery, Hai said.

Venezuela will explore possibilities of further cooperation with Vietnam in the oil industry, the statement cited Vice President Rafael Ramirez as saying.

The two countries will also seek other ways to boost cooperation in energy, the statement said.

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