Venezuela, Russian Consortium Gear Up for Orinoco Operations


Orinoco Heavy Oil Belt
(Click to Enlarge)

Venezuela's President, Hugo Chavez, has confirmed that state-run Petroleos de Venezuela (PDVSA) is gearing up with a Russian consortium to commence operations in the Orinoco Heavy Oil Belt, reports Dow Jones.

Moreover, the consortium will participate in the latest licensing round of Orinoco fields, thereby securing what industry insiders predict will be a significant position in ongoing and future project developments within the oil-rich region.

"The consortium will begin operations in the Orinoco region," Chavez told local media. "We just signed the official accord with Russia in Vienna."

The Russian consortium will consist of Lukoil Holdings, TNK, OAO Rosneft and OAO Gazprom, in joint cooperation with Venezuela's oil giant PDVSA, the Dow Jones report stated.

At OPEC's meeting in Vienna this past Sunday, Venezuela's Oil Minister, Rafael Ramirez, also reported that his country reached an agreement with Russia to form a consortium which will operate in the Junin 6 block of the Orinoco region. "[The Russian companies] can enter all above-water activities in the joint venture with PDVSA," Ramirez revealed to reporters prior to OPEC's meeting.

Additionally, Ramirez noted that the accord signed by the two countries is an amendment to an existing cooperation agreement for exploration and production activities, which stipulates that an investment of $6 billion will be needed for the Junin 6 block's development.

The Junin 6 block in the Orinoco Petroleum Belt is estimated to have a production capacity of 200,000 barrels per day of crude, according to the Venezuelan oil minister.

Related Companies
 Company: Exxon Mobil Corporationmore info


 - Nigeria To Mediate In Dispute Between Exxon And Labor Unions (May 24)
 - Shell Shareholders Reject Emissions Target Proposal (May 23)
 - ExxonMobil, Total Discuss Offshore Drilling Opportunities In Greece (May 19)
 Company: Lukoilmore info


 - Lukoil Finds Oil at Iraq Well (Feb 22)
 - Lukoil: CEO, VP Sell $34 Million Worth Of Shares (Dec 30)
 - Sources: Russia's Lukoil Appoints New VP For Sales And Supplies (Dec 27)
 Company: OAO Gazprommore info
 - Russia's Gazprom Cuts Gas Condensate Exports as Tax Bill, Tariffs Bite (May 17)
 - Russia's Gazprom Says Construction of Turkish Steam Begins (May 8)
 - Russian Official: Belarus Will Pay Russia Over $720 mln in Gas Debts (Apr 3)
 Company: Total S.A.more info
 - Uganda, Tanzania Sign Deal for World's Longest Heated Pipeline (May 26)
 - ExxonMobil, Total Discuss Offshore Drilling Opportunities In Greece (May 19)
 - Total Expands Oil Search Offshore West Africa With Mauritanian Deal (May 12)
 Company: ConocoPhillipsmore info


 - ConocoPhillips To Lay Off 300 In Canada After Cenovus Deal (May 4)
 - ConocoPhillips Posts Surprise Loss On Higher-Than-Expected Costs (May 2)
 - Deal Of The Month: ConocoPhillips Cuts Gas Profile in $3B San Juan Sale (Apr 28)
 Company: Chevron Corporationmore info
 - No New Demand, More Supply Leaves Spot Price Languishing (May 26)
 - South Africa Wants Sinopec to Retain Refinery Capacity (May 25)
 - Venezuela Oil Executive Arrested in Corruption Probe (May 23)
 Company: Rosneftmore info
 - Black Sea Diesel Plant Upgrade Delayed by a Year to 2019 (May 19)
 - Rosneft Net Income Lower Than Expected, Hit By Stronger Rouble (May 5)
 - Russian Oil Major Says US Shale Growth Imperils OPEC Deal (Mar 13)
 Company: PDVSAmore info


 - Venezuela's Secret Plot to Sell Banned Syrian Oil in U.S. Market (May 25)
 - Venezuela Oil Executive Arrested in Corruption Probe (May 23)
 - Fuel Shortage Again Hits Oil-rich Venezuela Amid Refinery Woes (May 17)
 Company: TNKmore info
 - TN-K Concludes Drilling in Ky. (May 17)
 - TN-K Completes Drilling 5 Additional Wells (May 5)
 - TN-K Completes Drilling on Kentucky Wells (Apr 15)
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE


Most Popular Articles


From the Career Center
Jobs that may interest you
Director Downhole Tool Engineering
Expertise: Electrical Engineering|Engineering Manager|MWD / LWD
Location: Houston, TX
 
Senior Land Professional Job
Expertise: Landman|Lease Analyst
Location: Oklahoma City, OK
 
Surface Land Professional Job
Expertise: Landman|Lease Analyst
Location: San Antonio, TX
 
search for more jobs

Brent Crude Oil : $51.46/BBL 4.63%
Light Crude Oil : $48.9/BBL 4.78%
Natural Gas : $3.18/MMBtu 0.90%
Updated in last 24 hours