August 27, 2008

Vietnamese, Venezuelan Firms to Exploit Crude Oil

Vietnamese, Venezuelan firms to exploit crude oil

HANOI, Aug. 26 (Xinhua) -- The state-owned Vietnam National Oil and Gas Group (PetroVietnam) is negotiating with Venezuelan partners about implementing five projects totaling tens of billions of U.S. dollars in both Vietnam and Venezuela, according to local newspaper Pioneer on Tuesday.

PetroVietnam said the future projects involve in exploiting crude oil in Venezuela, establishing an oil refinery joint venture in Vietnam and another oil transport joint venture, supplying Venezuelan crude oil to the oil refinery joint venture, and the group's purchase of finished petroleum products from Venezuelan petroleum company, Petroleos de Venezuela, known as PDVSA.

Vietnam is lessening the export of such fossil fuel as crude oil and coal to ensure sufficient supplies for oil refineries and energy- thirsty industries like electricity and cement. Its first refinery with an annual processing capacity of 6.5 million tons of crude oil under construction in central Quang Ngai province is scheduled to operate next February.

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