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Rosneft to invest more in Venezuela venture

epa05085981 (FILE) A file photo dated 21 February 2007 showing a general view of Yuganskneftegaz pumping station in Priobskoe oilfield some 200 km from Nefteyugansk, Russia. Russian oil production increased to an average of 10.73 million barrels per day in 2015, the highest level since the fall of the former Soviet Union in 1991, the Interfax news agency cited the Energy Ministry in Moscow as saying 02 January 2016. This compares to the 10.58 million barrels per day the ministry reported in 2014. Along with the United States and Saudi Arabia, Russia is one of the world's largest producers of oil. More than a third of the 2015 total was produced by the state oil company Rosneft. Russia's oil industry is more than 50-per-cent state-owned. Exports of raw materials are a major source of national income.  EPA/YURI KOCHETKOV

Bloomberg

Russia’s Rosneft OJSC agreed to pay $500 million to Petroleos de Venezuela SA to increase its stake in their Petromonagas crude-processing joint venture.
The deal will increase Rosneft’s stake in the upgrader that converts heavy oil into synthetic crude to 40 percent, PDVSA, as the Venezuelan state-owned company is known, said in an e-mailed statement, confirming earlier comments by President Nicolas Maduro. Rosneft previously held 16.7 percent, and PDVSA owned the remainder.
“The $500 million in new investment for production in the Venezuelan oil industry comes amid a crisis,” Maduro said during a broadcast of a ceremony where Rosneft and PDVSA officials signed the deal on Friday in Caracas.
Venezuela, holder of the world’s largest oil reserves, is enduring its deepest recession in a decade after oil prices slumped amid a global supply glut. In a bid to counter shrinking government revenues, Maduro this week raised gasoline prices for the first time in almost two decades and devalued the nation’s currency to get more bolivars for its petrodollars.
The Petromonagas project located in Venezuela’s Orinoco belt produced an average of 133,600 barrels a day of the synthetic crude in April, according to the latest data available from PDVSA. The upgrader prepares the oil to be processed in traditional refineries.

MARISCAL SUCRE

Rosneft and PDVSA also signed an agreement for the development of the Mejillones and Patao offshore natural gas fields, part of the Mariscal Sucre project.
Venezuela has been asking its partners to increase investment in joint ventures for several years to raise cash. In 2013, then Oil Minister Rafael Ramirez sought to give companies operating in the Orinoco Belt more autonomy to make decisions related to investments and operations, inviting them to bring in their own rigs, goods and services and financing for the joint projects.

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