Venezuela's state-run oil company PDVSA is to join forces with its Vietnamese counterpart for the further exploration of the Orinoco basin, in the east of the Latin American country.

Following a meeting of the two parties in Caracas, it was confirmed that two joint refining companies will be established with the aim of fulfilling the potential of the region, in which PetroVietnam already holds a concession.

Venezuelan energy and oil minister Rafael Ramirez stated: "PDVSA (Petroleos de Venezuela) and PetroVietnam will work together to build the two joint companies - one to transport oil to Vietnam and the other to refine that oil in Vietnam, at a refinery we jointly own."

Under recent legislation, PDVSA is always required to hold a controlling 60 per cent stake in any foreign exploration or production venture within Venezuela.

Currently, the country is the biggest oil producer in the continent of South America, with the International Energy Agency estimating that it produces up to 2.5 million barrels of oil per day.

Venezuela is also the fifth-largest exporter to the United States, though more recently has concentrated on exporting energy supplies to its Latin American neighbours.

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