Eng - News

Rosneft Increases Stake in Petromonagas JV with PDVSA

24.02.16 09:29

The document reflects indicative terms and conditions in relation to the equity acquisition. Currently Rosneft owns 16,67% in this joint venture, after the transaction is completed Rosneft will increase its stake to 40% of JV and PDVSA participation will be reduced to 60%.

The document, signed in continuation of the Memorandum, concluded in June 2015 within the St. Petersburg International Economic Forum demonstrates the level of cooperation between the Companies, at Rosneft’s commitment to the development of leading upstream projects in Venezuela.

The parties of the Petromonagas JV, already being one of the most prolific partnerships in Venezuela (crude oil production in 2015 exceeded 7.7 mln t), plan to amplify its development by introducing state-of-the-art technologies and raising E&P management efficiency.

Petromonagas currently produces and upgrades more than 130 Mbbls/d of extra heavy crude. Besides Petromonagas JV Rosneft also has the interest in the following joint ventures with PDVSA in Venezuela:

• Project Carabobo-2,4 (JV Petrovictoria). CVP (PDVSA subsidiary) - 60%, Rosneft - 40%
• Project Junin-6 (JV PetroMiranda). CVP (PDVSA subsidiary) - 60%, Rosneft - 32% through NOC in which Rosneft holds 80%
• JV Boqueron. CVP (PDVSA subsidiary) - 60%, Rosneft - 40%
• JV Petroperija. CVP (PDVSA subsidiary) - 60%, NOC - 40%

Original oil in place for these projects is estimated at over 20.5 billion tons.