29-09-09 Venezuela and Vietnam's state-run oil companies have begun talks aimed at agreeing on a plan to start producing oil together in Venezuela's Orinoco region by early 2011.
"It is expected that within 18 months the crude oil production process will begin," said Eulogio Del Pino, director of exploration and production at Venezuela's state energy firm Petroleos de Venezuela, or PdVSA.

The joint venture company, called Petromacareo, would be 60 % controlled by PdVSA and 40 % by Vietnam's state firm, PetroVietnam, the Venezuelan government said. The drilling would occur in the Junin II block of the Orinoco oil belt, with expectations of producing 200,000 bpd.
The joint venture firm is already approved by President Hugo Chavez and the National Assembly.

In summarizing Venezuela's oil production plans in the oil-rich Orinoco, the government statement said that in addition to a Vietnam joint venture, it aims for 450,000 bpd of production from Junin 6, which it plans to develop with a Russian consortium.
It also hopes to produce 400,000 bpd from Junin 4 with China National Petroleum Corporation (CNPC); 1.2 mm bpd from the seven blocks being auctioned in the upcoming Carabobo bidding round; and 200,000 bpd in each of the blocks Junin 10, Junin 5, Junin 1 and Junin 11. As such, Venezuela could boost its overall production capacity by some 3 mm bpd, to reach more than 6 mm bpd in "the coming years," the government said.

Despite these goals, observers question how much of a financial commitment some foreign oil firms will be willing to make, given the tricky regulatory environment in Venezuela, which is run by Hugo Chavez.
Also, the Orinoco belt's oil is mostly heavy and extra-heavy crude, making it expensive to turn into marketable, lighter crude.