Russia, Venezuela Strengthen Energy Ties in Orinoco Oil Belt



During his visit to Russia, Venezuelan President Hugo Chavez and Russian President Dmitry Medvedev further strengthened energy ties by signing a package of deals, including a memorandum of understanding to develop the Junin-6 field in Venezuela, reports Russian media news source RIA Novosti.

Located in the South American country's Orinoco belt, which is estimated to house reserves of some 235 billion barrels of heavy oil, the Junin-6 field will be developed by state-run PDVSA and a consortium of major Russian oil producers consisting of TNK-BP, Lukoil, Gazprom and Surgutneftegaz.

According to Chavez, the Venezuelan-Russian joint venture will pump a daily output of 400,000 barrels of oil.

PDVSA also authorized an agreement with Russian pipeline monopoly Transneft for infrastructure in the Orinoco region, the media outlet said.  Transneft confirmed Friday that it will start construction on a 1,300-kilometer oil pipeline within three to four years, which PDVSA estimates will cost $600 million. 

Additionally, Transneft said it will build a 700 kilometer pipeline from the Junin-6 field.


RELATED COMPANIES
Company: Lukoil more info
 - Lukoil Taps SNC-Lavalin for Iraq Contract (Sep 06)
 - Lukoil Reports 20% Rise In 2Q Profit On Stronger Oil, Weaker Rouble (Aug 29)
 - Romania Closes One Case Against Russia's Lukoil, Related Trial Still On (Nov 17)
Company: OAO Gazprom more info
 - Gazprom's Second Quarter Profit Soars On Rising Energy Prices, Sales (Aug 29)
 - Russian Gas Exports Hit a New Summertime Record (Jul 17)
 - Trump: US to Compete With Russia for Europe Gas Market (Jul 16)
Company: Rosneft more info
 - Ifax: ExxonMobil Sees Russian LNG Plant's Capacity At 6.2MM T/Year (Jun 07)
 - Russia State Oil Firm Starts Drilling At New Well Offshore Vietnam (May 15)
 - Rosneft Appeals to Market With $2 Billion Buyback, Debt Cut (May 01)
Company: PDVSA more info
 - Documents: Venezuela Resumes Domestic Crude Exports To Cuba (Sep 13)
 - Documents: Venezuela's PDVSA To Reopen Damaged Port Dock By Month's End (Sep 12)
 - Venezuelan Crude Sales To US Fell In August On Port Interruptions (Sep 04)
Company: Surgutneftegas more info
 - Russia's Surgut to Launch Shpilman Oil Field (Sep 03)
 - Minister: Asian Firms To Replace Western Energy Majors If They Leave Russia (Sep 22)
 - Russians to Pay $600MM, Not $1B, to Start Venezuela Oil Drilling (Oct 06)
Company: TNK-BP more info
 - Rosneft Board Member Rejects Criticism of TNK-BP Buyout (Oct 04)
 - Rosneft: TNK-BP Integration 'Mostly Complete' (Jun 20)
 - TNK-BP Acquisition Boosts Rosneft's 1Q Production (Apr 30)
Company: Transneft more info
 - Russia's Transneft Launches 'Yug' Oil Products Pipeline (Apr 05)
 - Transneft: Russian Oil Product Exports From Black Sea Port 'Collapse' (Feb 21)
 - Russia's Transneft: Storm Suspends Oil Loadings From Novorossiisk (Feb 02)