Venezuela, Russia in joint oil venture [View all]

[Judi Lynn]

Venezuela, Russia in joint oil venture
Friday, 24 May 2013 11:49
Posted by Parvez Jabri

BARCELONA: Venezuela and Russia formed a joint venture Thursday to produce 120,000 barrels of oil a day by 2016 in two fields in the Orinoco Heavy Oil Belt.

Russia will loan Venezuela $1.5 billion to finance the development of the fields under the terms of the agreement, and put up $1.1 billion for a 40 percent share in Petrovictoria.

The agreement establishing Petrovictoria was signed by the president of the state-owned Petroleos de Venezuela (PDVSA), Rafael Ramirez, and the president of Russian state oil company Rosneft, Igor Sechin.

PDVSA will sell to Russia 72 percent of the heavy and extra-heavy crude produced by the company, which has a long-term goal of producing 400,000 barrels a day.

More:
http://www.brecorder.com/markets/energy/europe/120852.html