Rosneft, PDVSA ink offshore projects deals

Rosneft President and Chairman of the Management Board Igor Sechin and Venezuelan Minister of Petroleum and Mining and PDVSA President Rafael Ramirez signed a Cooperation Agreement to implement offshore projects in Rio-Caribe and Mejillones blocks (Phase II of the Mariscal Sucre Project).

As part of the document, the parties express their interest to continue negotiations with the goal of reaching an agreement on key technical requirements, commercial and legal terms for the potential establishing of joint ventures to develop Rio-Caribe and Mejillones blocks in accordance with legislation of Venezuela. The parties also held negotiations on LNG plant construction.

The parties also agreed to set up a joint venture to engage in the activities in relation to well drilling, re-completion and well infrastructure development, as well as to provide any services related to the procurement of equipment, devices, materials and services within Rosneft / PDVSA joint projects.

In the course of their negotiations, Rosneft and PDVSA agreed to extend the Petrovictoria JV Establishment and Operation Agreement with the purpose of prolonging the Carabobo-2 project entry bonus agreement.

Igor Sechin said at the document signing ceremony: “Today we signed a series of agreements. I am pleased to note that our collaboration continues. To highlight, today we reached an agreement on setting up a service company for servicing production projects and promoting advanced technologies. Our agreement to set up a construction JV is equally important. Our cooperation is substantial and natural. The 8 million barrels a day we produce is a material production level. This underpins the energy security of several countries. We are set to develop our cooperation. We are now working on a number of new agreements and I am confident we will come to terms. The bonus agreement will allow us to pay $440 million which will serve to strengthen the Venezuelan economy.”