Venezuela promulgated a decree on establishing a joint venture with Rosneft

The Venezuelan government has promulgated a decree on the establishment of a joint venture with Rosneft, reportsVzglyad.

Telegrafistreports that Venezuela, like Russia, is one of the largest oil exporters in the world. April 4 Nicolas Maduro reiterated the strategic nature of relations between the two countries. Last year, the Russian-Venezuelan trade came close to $ 2 billion. And Venezuela has become the second most important economic partner, after Brazil, Russia among the countries of Latin America. Traditional areas of cooperation are energy and military-technical sphere. But there are also new areas. For example, now considered a joint project of the shipyard on the river Orinoco, which will build oil tankers.

It is aboutJoint venture between OAO "Rosneft" and a subsidiary of the Venezuelan oil company PDVSA — Corporacion Venecolana del Petroleo (CVP), RIA "Novosti".

The decree was published in the official government publication Room Venezuela Gaceta Oficial. In early April, an agreement on the establishment of a joint Russian-Venezuelan enterprise ratified by the National Assembly of Venezuela.

Joint venture willdevelopment blocks Carabobo-2 "Northern" (132 square miles) and Carabobo-4 "West" (210 square km) in the Orinoco River basinin the states of Anzoategui and Monagas. According to the documentRussia’s share of the company will be 40%.

The new structure will carry out exploration, production, transportation and storage of oil and associated natural gas.

In addition, the joint venture will be engaged in the preparation of heavy and extra-heavy oil and selling it on a par with the products obtained as a result of these operations. The term of the Company is set at 25 years, after which can be extended. The decree emphasized that the decision to establish a joint venture is part of a strategy to attract foreign investment to develop the Orinoco Oil Belt basin.

According to Venezuelan Oil Minister Rafael Ramirez, co-investments in Russian-Venezuelan projects in 2019 will amount to 46.9 billion dollars, of which the Russian part will have 17.6 billion dollars. By 2021, thejoint production will reach 1.123 million barrels per day.

At present, Russian companiesinvolved in five oil projects in Venezuela.

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