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Venezuelan firm in oil JV with Rosneft to produce 40bn barrels
May 24, 2013, 11:43 am


Oil deposits of the belt are estimated at 40 billion barrels [AP]

Venezuela’s PDVSA and Russia’s Rosneft have formed a joint venture, Petrovictoria, that will produce 120,000 barrels of oil a day by 2016 in two fields in the Orinoco heavy oil Belt.

In the long term the company expects to reach a production output of 400,000 barrels a day.

Oil deposits of the belt are estimated at 40 billion barrels.

The agreement has been signed by Rosneft’s CEO Igor Sechin and PDVSA’s President Rafael Ramírez, in the presence of Venezuelan President Nicolas Maduro.

The joint venture has also been approved by Venezuela’s National Assembly.

Rosneft’s stake in the joint venture accounts for 40 per cent, and Corporacion Venezolana del Petroleo – PDVSA subsidiary – has 60 per cent.

Under the agreement, Rosneft will pay a bonus of $1.1 billion for joining the project and will also provide a $1.5 billion loan to finance the development of the fields

The joint investment of the two companies might reach $14 billion, with $9 billion being invested before 2019.

Daria Chernyshova