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Rosneft to acquire additional stake in Petromonagas joint venture in Venezuela

EBR Staff Writer Published 22 February 2016

Russian state oil company Rosneft has signed an agreement to acquire 23.3% stake in the Petromonagas crude-processing joint venture in Venezuela's Orinoco Belt region from country’s state oil firm Petroleos de Venezuela (PDVSA), for $500m.

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Upon completion of the deal, Rosneft's stake in the joint venture will increase from 16.67% to 40%.

The partners are planning to introduce advanced technologies and increase exploration and production management efficiency in a bid to further strengthen their Petromonagas JV.

At present, Petromonagas produces and upgrades more than 130 Mbbls/d of extra heavy crude.

Bloomberg cited Venezuela President Nicolas Maduro as saying: "The $500m million in new investment for production in the Venezuelan oil industry comes amid a crisis."

Separately, Rosneft signed an agreement with PDVSA for the joint development of production, treatment and sale of natural gas produced from offshore fields including Patao, Mejillones and potentially Rio Caribe in Venezuela.

As per the deal, the partners will equally own the joint venture with Rosneft as operator.

Rosneft expects the gas production at the three fields, which part of the Mariscal Sucre natural gas project off the eastern coast of Venezuela, to reach up to 25 million cubic meters per day.

The gas would be shipped though pipeline or liquefied natural gas (LNG) project.

Rosneft, at present, has stakes in five projects in Venezuela which include Petromonagas, Petrovictoria, Petromiranda, Boqueron and Petroperija.

The projects are estimated to hold oil reserves of more than 20.5 billion tons (about 150 billion barrels).


Image: Gas production from the three fields in the Mariscal Sucre natural gas project is expected to reach up to 25 million cubic meters per day. Photo: courtesy of num_skyman/ FreeDigitalPhotos.net.