Investment is expected to double current production
Venezuelan President Nicolas Maduro said that Russia’s top oil producer, Rosneft (ticker: RNFTF), agreed to invest around $14 billion in the South American OPEC country’s oil and gas sector. Maduro met with Rosneft CEO Igor Sechin and Venezuela state-owned PDVSA’s president, Eulogio del Pino, Wednesday, reports Reuters.
“We had a great meeting and agreed on investment of over $14 billion,” Maduro said in a televised broadcast, adding funds would go toward doubling Venezuela’s oil production. Maduro did not provide a breakdown of the investment plan.
Rosneft said in an email to Reuters that the $14 billion dollars was the total amount of investments of the company in Venezuela during the lifespan of current and future projects. The company already invested $1.8 billion from 2010 to 2014, and sees its own oil production in Venezuela rising to 8 million tons per annum (160 MBOPD) by 2019.
PDVSA said on Twitter the two countries agreed to “create companies together” to boost crude production, adding both nations want to expand crude extraction in the Orinoco Belt, where Rosneft already has joint ventures with PDVSA. The Orinoco Belt is a territory encompassing the southern strip of the eastern Orinoco River Basin and sits on top of one of the world’s largest petroleum deposits.
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