Rosneft has increased its stake in Venezuela’s Petromongas heavy oil joint venture with a $500million investment.
Russia’s top oil producer is raises its stake in the joint venture, in Venezuela’s Orinoco Belt region, to 40%.
That is the maximum stake foreign partners are allowed to hold in joint ventures with Venezuelan state oil firm PDVSA .
The Russian energy firm and PDVSA have signed key terms for the acquisition of 23.33% of the share capital.
Rosneft already owns 16.67% which will increase its stake to 40% with PDVSA participation will be reduced to 60%.
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:
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.