Pequiven, ExxonMobil Reach "Understanding" on Olefins Projec

The negotiating teams of the Pequiven petrochemical subsidiary of Venezuela's state oil company PDVSA and US-based ExxonMobil Chemical Company have "reached an understanding" on how they will develop an olefins project at the Jose petrochemicals complex in Anzoategui state, an ExxonMobil spokesperson told BNamericas.

"Pequiven and ExxonMobil Chemical Company have been in discussions regarding the Jose Olefins Project. The negotiating teams have reached an understanding on how the project would be developed, which is now under review," the official said.

A PDVSA spokesperson told BNamericas that there is no set date yet for the signing of the final agreement. ExxonMobil could have a 50% stake in the project, while PDVSA would have 48% and employees the other 2%, PDVSA president Alí Rodríguez was reported as saying in February.

According to previous reports, estimated investment in the project would be US$2.65bn and the partners would finance 40% of the project and the rest would be secured via international capital markets.

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