VietinBank lends US$253 mil. to PVEP
By Truong Nam - The Saigon Times Daily
HCMC – Vietnam Commercial Bank for Industry and Trade, or VietinBank, last week signed a memorandum of understanding to fund over US$253 million to PetroVietnam Exploration Production Corporation (PVEP), an affiliate of Vietnam National Oil and Gas Group.
The loan with a term of seven years will assist PVEP to develop the project Lot 67 in Peru, South America.
According to VietinBank’s statement, the project is near Peru’s northern border with Ecuador, an important oil and gas exploitation area. Peru’s government has prioritized the area and offered many incentives to foreign investors.
PVEP has invested to own 50% of interest in Lot 67, which is expected to turn out its first commercial oil flow next year. Initial output will be 6,000 barrels a day and will rise to 15,000 barrels in 2015 and 61,000 barrels in 2019.
Speaking at the signing ceremony, VietinBank chairman Pham Huy Hung said the project has huge potential. PVEP is developing 65 projects, including 20 overseas.
VietinBank previously lent US$200 million to a project to develop Dai Hung oil field in Vietnam.