The Malaysian state run oil firm Petroliam Nasional Bhd had announced its withdrawal from the Carabobo project located in Venezuela. The local firm, PC Venezuela Ltd, a subsidiary of the Kuala Lumpur based mining explorer and refinery, informed the Venezuelan government of its decision last August 27.

Petronas spokesman Azman Ibrahim, through an emailed statement, confirmed the exit but did not provide a reason for the pull out or an explanation as to the process of dissolution of the venture.

One of the main reasons attributed to the sudden decisionm in a report from Reuters, was a dispute over the terms of the agreement with the Venezuelan state controlled oil explorer Petroleos de Venezuela SA. Reuters cited individuals familiar with the project who sought to remain anonymous as they had no authority to speak on the matter.

Petronas together with Repson SA of Spain, Oil and Natural Gas Corp of India, Indian Oil Corp and Oil India Ltd bought 40% interest in the Carabobo-1 project located in the Orinoco oil belt in Venezuela back in February 2010. Despite having the world's largest crude oil reserves, it had struggled to increase its extraction and production. In a report by the BP Statistical Review, oil output from the South American country had dropped each year since 2007.