Russia Signed Oil Output Contract with Venezuela

It is reported that the oil giant in Venezuela, PDVSA (Petroleo De Venezuela S.A.) and the Russian state-owned oil giant, Rosneft has agreed to cooperate to raise oil output of the oil field that located at the eastern of Venezuela.


Raphael Ramirez, the CEO of PDVSA signed oil output contract with Igor Sechin, the CEO of Rosneft in Caracas on July 29, aiming at increasing oil output in Orinoco oil zone. Orinoco oil zone is one of the largest oil and gas storages in the world.


Ramirez said, “We have agreed to accelerate our joint mechanism inVenezuela. We plan to increase daily oil output from 1.5 hundred thousand barrels to more than one million barrels.”


Sechin said that Rosneft would pay 4.4 hundred million dollars before September as part of fees that Rosneft entered into resources in Venezuela. “I think that the cooperation between PDVSA and Rosneft is harmonious. And the cooperation has larger space for development.” Sechin said.


Several joint ventures between Venezuela and Russia have begun to carry out oil and gas operations on Orinoco oil zone, including Petro Victoria, Petro Monagas and Petro Miranda.


On August 4, Lukoil, the Russian largest private oil company announced that the company would sell all of 138 gas stations located in Czech, Hungary and Slovakia, three countries in the Middle Europe. Lukoil explained that sale was one of parts for optimizing businesses. However, media considered that it had close relationship with sanctions of the western on Russia due to crisis in Ukraine. Likoil had already withdrawn all of its businesses in Ukraine before and warned that the sanctions of the western would affect Russian companies. 

Aug 07,2014
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