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