PetroVietnam aims to reactivate its PDVSA JV

Vietnam’s state-owned oil company PetroVietnam (PVN) is hoping to reactivate its joint venture with Venezuela counterpart PDVSA and is holding talks with its partner. The companies signed a Memorandum of Understanding (MoU) in 2009 to create a joint venture, PetroMacareo (60% PDVSA and 40% PetroVietnam), that was expected to process 200,000 b/d of extra-heavy crude oil from the Junin 2 field as of 2011. However, challenging economic conditions prompted the companies to halt production in 2014 and PetroMacareo’s activities have been stalled since then. PVN, which had been seeking to expand its crude oil production outside Vietnam, was hit by Venezuela’s tough investment environment and high inflation.