27/11/2009
Venezuela and Russia to invest $ 2.2 billion in oil projects

Caracas, Nov 25 ABN.- Russia and Venezuela will invest 2.2 billion dollars in joint strategic oil projects, according to a law setting up the bilateral agreement, published on the national official gazette on November 23, 2009.

According to the agreement, signed in Moscow on September 10th, the Venezuelan Oil Corporation and the Russian National Oil Association will create and operate a joint venture that will work at Venezuela's Orinoco Oil Belt.

In this regard, the joint venture will be able to produce up to 450 thousand barrels of extra heavy crude oil at the Junin 6 Bloc, of 447.82 square meters.

The Venezuelan party will hold 60% of the shares and Russia 40%.

The joint venture will produce and improve heavy crude and also commercialize improved oil from Petroleos de Venezuela (PDVSA) and international markets, abiding by the oil fiscal legislation.

Moreover, the agreement guarantees the creation of the necessary infrastructure for the company and free access of the organizations of the two parties involved.

The Russian Ministry of Energy and the Venezuelan Ministry of Energy and Oil will be in charge of coordinating and monitoring the project.

The agreement will be in force for 25 years and can be renewed for 5-year consecutive terms.