Vietnam Gas and Oil Group (PetroVietnam) has signed a memorandum of understanding with Venezuela National Oil and Gas Group (PDVSA) to set up a joint venture in charge of upgrading the heavy oil mining project at Block Junin 2 of Orinoco oilfield offshore Venezuela.
The joint venture contract will take effect after getting an approval by Venezuela's government.
The estimated capacity of Block Junin 2 is 200,000 barrels of oil a day or 10 million tonnes a year.
At the same time, PetroVietnam's subsidiary PV Oil and Venezuela's state oil company also signed a contract for trading FO oil.
