Wednesday, July 30, 2014

Venezuela/Russia: Russia's Rosneft, PDVSA Jointly Owns Carabobo-2

According to The Latin American Tribune, Russian state-owned oil company Rosneft has signed a deal with Venezuelan counterpart PDVSA corresponding to a $440 million partial payment for access to a heavy-oil project in the South American country.

All foreign companies interested in working in Venezuela’s energy sector must first pay the government a so-called “bono de acceso” fee for those rights.

PetroVictoria, a joint venture in which PDVSA has a 60% stake and Rosneft has the remaining 40%, owns the Carabobo-2 project in eastern Venezuela’s Orinoco Belt.

COMMENT: Politically, if the US decided to rely on its own oil, shale and gas reserves it could adversely impact on Venezuela's annual revenues, but seemingly the Obama Administration has chosen not to do so, even though the national debt could be significantly reduced over the long-term.

The two companies also signed agreements to create joint ventures for developing other projects in the Orinoco Belt and for specialized oil services.

Venezuela holds nearly 300 billion barrels of proved oil reserves, or around 25% of the global total, international certification processes have shown.

The country South American produces approximately three million barrels of oil per day and exports roughly 2.5 million bpd, mainly to the US and China, according to official figures.