Monday, November 17, 2014

Venezuela/Russia: One Can Judge the Character of One's Friends by the Company They Keep

According to The Latin American Tribune, an agreement between the Russian government's Rosneft oil company and its Venezuelan counterpart, PDVSA, reportedly closed a deal to purchase 1.6 million tons of oil and nine tons of petroleum derivates from the Latin American country over the next five years.

Present at Monday’s signing ceremony was Venezuelan Foreign Minister Rafaél Ramírez, who arrived last Saturday in Moscow for negotiations with Rosneft CEO Igor Sechin regarding the falling price of oil.

According to Russian news agencies, Sechin said: “I would like to emphasize the growing volume of cooperation between Russia and Venezuela in the oil sector. I thank the Vice-president and Minister of Foreign Affairs of Venezuela Rafaél Ramírez and the new Head of PDVSA, Eulogio del Pino, for their support in the implementation of new projects.”

This was the second contract signed between the two companies to provide Russia with Venezuelan oil. The first occasion dates from May 2014 covering the same period of time and in it, Russia agrees to purchase 1.6 million tons of oil in addition to 7.5 million tons of derivatives.

Rosneft received 375,000 tons of oil derivatives under the first agreement, which obliged Russia to pay $2 million as a deposit.

Rosnet and PDVSA are operating together in five oil extraction projects in Venezuela, a country with reserves estimated at 20,500 million tons of oil.

COMMENT: 
During the visit of Venezuelan President Nicolás Maduro to Russia last July, the two state-owned companies signed a cooperation agreement for carrying out joint projects in the Latin American country.

Meanwhile, Ramírez was set to continue his international tour, which is aimed at seeking support from oil exporting countries to deal with the sharply falling prices of oil.

During his visit to Iran on Saturday, Ramírez said that $100 per barrel is the price desired by Venezuela, although the figure in question reached $115 per barrel in June, Iranian newsmedia reported on Monday.

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