Courtesy of rosneft.com

President of Venezuela Nicolas Maduro says his country has reached an agreement with Russia, which will see investment of $14 billion in the oil and gas sector over the next few years.

The agreement was reached between the Venezuelan state oil firm, PDVSA (Petroleos de Venezuela) and the Russian oil giant, Rosneft, after talks in the South American country’s capital, Caracas, between Maduro, the president of PDVSA, Eulogio Del Pino, and the president of Rosneft, Igor Sechin.

“We had a great meeting and agreed on investment of over $14 billion,” said Maduro in a television address, following a meeting with Sechin. He added that the funds would go towards doubling Venezuela’s oil production.

According to the Venezuelan president, the investment will be used to develop the so-called Orinoco Belt, which runs through the northeast and into the Caribbean Sea. The belt holds some of the largest crude oil reserves in the world. The two countries will also look into developing the Latin American nation’s gas sphere.

Rosneft’s Statement:

May 28, as part of his business trip to Caracas, Rosneft Chairman of the Management Board Igor Sechin met with the President of the Bolivarian Republic of Venezuela Nicolás Maduro. The parties discussed a wide range of issues concerning ongoing cooperation and outlook for development of the new projects.

Partnership of Rosneft and its Venezuelan partners has strong and strategic nature and is focused on long-term cooperation.

In Venezuela, Rosneft is engaged in five production projects with the total annual output of 9 mln tons in 2013-2014, or 4% of the country’s total output, where Rosneft’s contribution stands at 1.6 mln tons. Rosneft is consistently expanding its ties with Venezuela and is set to boost its crude output in the country to 8 mln tons a year, from 1.6 mln in 2014. Between 2010 and 2014 Rosneft’s investment in the joint ventures totaled USD1.8 bln.

Signing of two long-term agreements for crude oil and petroleum product supplies from PDVSA between Rosneft and PDVSA became a significant result of 2014.

Source: rogtecmagazine.com