Rosneft , PDVSA enter JV gas project in Venezuela

Rosneft and PDVSA agreed to establish a 50-50 joint venture (JV) for implementation of the large-scale project for production, treatment and sale of natural gas at the offshore fields Patao, Mejillones and potentially Rio Caribe in Venezuela.

The new agreement, concluded with the support from the Ministry of Petroleum and Mining of the Bolivarian Republic of Venezuela, provides that the parties shall move to the practical stage and perform the in-depth feasibility study on the project. In parallel the parties plan within the short time limit agree and provide for the approval of the Ministry of Petroleum and Mining the complete set of legally binding agreements regulating establishment of the joint venture.

The gas production at the three fields is expected to be up to 25 million cubic meters per day (9 billion cubic meters per annum), providing the potential to develop the world-class export-oriented pipeline or LNG project.