Nation pumps Venezuelan oil

The PetroVietnam Exploration and Production Corporation (PVEP) expected to extract the first oil from its largest project yet – the Block Junin 2 in Venezuela in 2012, the corporation chairman Tran Duc Chinh said at press conference in Ha Noi yesterday.

The $4.8 billion project, the highest valued PVEP investment yet, also includes investment from the leading National Oil and Gas Group (PetroVietnam).

“It is estimated that the block can churn out 50,000 barrels of crude oil per day by 2014 and with the full capacity productivity may reach 200,000 barrels of crude oil per day by 2016, equivalent to 10 million tonnes of crude oil, of which PVEP will take over four million tonnes, Chinh added.

PetroMacareo – a joint venture between PVEP and Corporation Venezolana del Petroleo was established in June to operate the Junin 2 project with a total investment capital at US$12 billion.

The $4.8 billion investment originates from PVEP capital and commercial loans, Chinh said.

“In the context of oil and gas resources in the country becoming exhausted, PVEP has mapped out strategies to boost oil and gas exploitation and exploration abroad in an effort to ensure the country’s energy security and reserves,” he said.

Four million tonnes of crude oil exploited from Junin 2 will be imported to Viet Nam to supply the local market.

To carry out its projects overseas, the corporation will flexibly apply various regimes, possibly set up joint ventures or buy oil rigs abroad, according to Chinh.

In its strategies, PVEP plans to bolster oil and gas exploration and exploitation offshore and deep-water oil rigs rather than the currently employed shallow-water structures.

“To realise its objectives, the PetroVietnam as well as the corporation have asked the Government to offer preferential policies to attract foreign investors to jointly undertake deep-water oil-fields offshore from Viet Nam,” Chinh said.

PVEP totalled a total revenue of VND18.97 trillion ($998.4 million) in the first six months of this year, up 36 per cent against the same period last year.

It paid about VND5.8 trillion ($305 million) to the State budget during the period, a year-on-year increase of 21 per cent.

Nguyen Vu Truong Son, the corporation director general said that PVEP had injected $491 million to carry out its projects in the first half this year.

The corporation has started exploration at the Block 15.1 of Su Tu Den Dong Bac or North-east Black Lion Oil-field offshore from Viet Nam and the Block D30-SK305 in Malaysia so far this year, Son said.

It plans to export 4.5 million tonnes of crude oil and 3.96 million cu.m of gas in the second half of this year, with total revenue likely to hit VND15.7 trillion, meaning the corporation will be able to pay about VND4.68 trillion to the State budget. It also hopes to sign 5-7 new contracts with local and foreign partners and put into two new oil rigs into operation. — VNS

Tags: the Block Junin 2, Vietnam oil, Vietnam oil market