Rosneft to increase stake in Petromonagas project in Venezuela

Russian company Rosneft has agreed to pay $500m to Petroleos de Venezuela (PDVSA) in a bid to increase its stake in the Petromonagas crude-processing joint venture (JV).

Following the deal, Rosneft will increase its ownership in the project in Venezuela’s Orinoco belt to 40% from its previously held 16.7%.

PDVSA owns the remaining 83.3% in the JV. The deal will reduce the company’s interest to 60%.

Both the companies plan to amplify the project development by introducing new technologies and raising E&P management efficiency.

At present, Petromonagas produces and upgrades over 130 Mbbls/d of extra heavy crude.

The first export contract between Rosneft and PDVSA was signed in May 2014.

As part of that contract, the Venezuelan company supplied about 375 thousands tonnes of oil products.

Rosneft has interest in five projects in Venezuela which include Petromonagas, Petrovictoria, Petromiranda, Boqueron and Petroperija.

Original oil in place for the total projects is estimated to be more than 20.5 billion tonnes.

Separately, the companies also signed an agreement for the joint development of production, treatment and sale of natural gas from Patao, Mejillones and Rio Caribe offshore fields.