MANAGUA – The Nicaraguan government has signed an agreement with Vietnamese state-owned energy firm PetroVietnam for the exploration of offshore oil and natural gas reserves.
The accords were signed by Petroleos de Nicaragua CEO Francisco López and PetroVietnam President Dinh La Thang, with Nicaraguan President Daniel Ortega participating as witness of honor, the Nicaraguan government said in a statement Tuesday.
López said the accords with PetroVietnam cover hydrocarbon exploration and viability studies at Nicaragua's Pacific and Caribbean platforms.
PetroVietnam also pledged to provide technical assistance through the El Supremo Sueño de Bolivar refinery, to be located in Nagarote, a town 90 kilometers west of Managua, he said.
That facility will cost $3.9 billion to build, and will possess the refining capacity to churn out 150,000 barrels of crude per day, turning Nicaragua into an exporter of petroleum derivatives. The project is being constructed with financial assistance from close ally Venezuela.
López also announced that a PetroVietnam executive mission will be arriving in Nicaragua within four weeks to explore the "distinct possibility" that "there are large reserves of petroleum and natural gas" in the Central American country.
That mission will provide continuity to studies already being carried out.
The Nicaraguan government said the importance of the accord is that it will create "a big opportunity for Nicaragua to achieve energy independence, since PetroVietnam is one of the world's most important companies in the hydrocarbons sector."
PetroVietnam, Vietnam's largest state-owned company, has annual revenues of $20 billion, $8 billion of which are used to finance the national budget, López said.
The company currently has 20 commercial contracts with partners in 13 different countries.
In addition to petroleum and gas exploration, PetroVietnam also operates three gas-fired power plants in the Asian country with a combined capacity of 2,000 megawatts, López said. |