Skip to comments.Malaysia's Petronas exiting Venezuela crude project
Posted on 09/10/2013 8:48:44 PM PDT by TexGrill
(Reuters) - Malaysian oil company Petronas said it is exiting one of the biggest petroleum projects in Venezuela's Orinoco belt, after what sources close to the venture and within the firm said were disagreements with Venezuelan authorities and state-run PDVSA.
The flagship project, called Petrocarabobo, has planned investments of about $20 billion over 25 years and calls for building a 200,000 barrel per day upgrader to convert heavy crude into light crude oil.
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.
Petroleos de Venezuela (PDVSA) has 60 percent of the project. Petronas belongs to a consortium that holds 40 percent. Its other partners are Spain's Repsol, India's ONGC (ONGC.NS) and two smaller Indian firms, Oil India (OILI.NS) and Indian Oil Corp (IOC.NS). Petronas holds an 11 percent stake.
Sources close to ONGC and Oil India said on Wednesday they were unlikely to buy the stake being shed by Petronas.
Petronas PETR.UL confirmed on Tuesday Reuters' report that it was withdrawing from the project, saying that the decision had been conveyed to Venezuela's government on August 27. Petronas sources later told Reuters the move was part of its strategic review of global assets.
Venezuela's Petroleum Minister Rafael Ramirez declined to address the issue on Monday and urged reporters in Caracas to consult Petronas.
A Petronas company source in Kuala Lumpur said the withdrawal was due to unspecified problems in dealing with Venezuelan authorities and because the state giant preferred to "play it a bit more safe" by focusing on established markets such as Canada and Australia.
(Excerpt) Read more at reuters.com ...
I guess that bus driver who’s running Venezuela these days must have wanted more moolah. He’s going to finish the job that Chavez started.
Confucius say Jimmy Carter actually Malaysian...
Crony socialism is an ugly thing.
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