The PetroVietnam Exploration and Production Corporation (PEVP) will form a joint venture with Corporation Venezolana del Petroleo to explore and operate an oil field in Venezuela.
PetroMacareo will exploit the field in the North of Block Junin 2, containing about 36 million barrels of oil, for 25 years.
The venture, which has a 40 percent stake held by PEVP, a wholly-owned subsidiary of Viet Nam Oil and Gas Group, PetroVietnam, has the capacity to exploit 200,000 barrels of heavy crude oil a day. The oil will be processed in a refinery before being shipped to various markets, said the Vietnamese partner.
The amount of investment made in the joint venture was not divulged.
The company said in a statement that a deal to set up the venture was signed last year by the two partners, marking a remarkable milestone on its history. The joint venture will contribute to the growth of Vietnam's petroleum industry and enhance national energy security, the statement said.
PetroVietnam said it was boosting cooperation with foreign partners in oil investment and exploration to expand operations and in preparation for a scenario when national oil sources are exhausted.