Petronas exits Venezuela venture

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orinocoMalaysia’s oil giant Petronas is exiting one of the biggest petroleum projects in Venezuela’s Orinoco belt after disagreements with Venezuela’s state-run Petroleos de Venezuela (PDVSA), Reuters reported on September 10.

The project, called Petrocarabobo, has planned investments of about $20 billion over 25 years. When the venture was formed in 2010, Venezuela touted it as a sign that oil companies were willing to put up with demanding fiscal conditions in exchange for access to the world’s largest oil reserves.

PDVSA has 60 per cent of the project. Petronas belongs to a consortium that holds 40 per cent. Its other partners are Spain’s Repsol, India’s ONGC and two small Indian firms. Petronas itself holds an 11 per cent stake.

Petronas will not run any other projects in the OPEC-member country, according to the report. Venezuela’s Petroleum Minister Rafael Ramirez declined to address the issue.

Venezuela’s Orinoco belt extends over 55,314 square kilometers and contains 257 billion barrels of proven heavy oil reserves, according to PDVSA. The Petrocarabobo project is planned to produce 480,000 barrels a day.

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Reading Time: 1 minute

Malaysia’s oil giant Petronas is exiting one of the biggest petroleum projects in Venezuela’s Orinoco belt after disagreements with Venezuela’s state-run Petroleos de Venezuela (PDVSA), Reuters reported on September 10.

Reading Time: 1 minute

orinocoMalaysia’s oil giant Petronas is exiting one of the biggest petroleum projects in Venezuela’s Orinoco belt after disagreements with Venezuela’s state-run Petroleos de Venezuela (PDVSA), Reuters reported on September 10.

The project, called Petrocarabobo, has planned investments of about $20 billion over 25 years. When the venture was formed in 2010, Venezuela touted it as a sign that oil companies were willing to put up with demanding fiscal conditions in exchange for access to the world’s largest oil reserves.

PDVSA has 60 per cent of the project. Petronas belongs to a consortium that holds 40 per cent. Its other partners are Spain’s Repsol, India’s ONGC and two small Indian firms. Petronas itself holds an 11 per cent stake.

Petronas will not run any other projects in the OPEC-member country, according to the report. Venezuela’s Petroleum Minister Rafael Ramirez declined to address the issue.

Venezuela’s Orinoco belt extends over 55,314 square kilometers and contains 257 billion barrels of proven heavy oil reserves, according to PDVSA. The Petrocarabobo project is planned to produce 480,000 barrels a day.

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