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.

Petroleos de Venezuela (PDVSA) has 60 per cent of the project. Petronas belongs to a consortium that holds 40 per cent. Its other partners are Spain’s Repsol, India’s ONGC and two smaller Indian firms. Petronas holds an 11 per cent stake.

Petronas sources told Reuters the move was part of its strategic review of global assets. – (Bloomberg)