Wednesday, June 3, 2009

Russia to Help Develop Orinico Belt

Venezuela and five Russian oil companies have signed an agreement to develop Orinoco Belt. Considering "Caesar Chavez's" manhandling of the nation's oil industry has dropped production down to 2.15 mbpd, we'll see how this pans out.

Venezuela agreed to work with a group of five Russian oil companies including Rosneft and Lukoil to create an oil joint venture in areas of the country’s Orinoco Belt, according to an accord published today.

The venture will work in the central and northern parts of the Carabobo 1 Block, according to an agreement signed 26 November and printed today in the Official Gazette, the formal record of Venezuelan government actions.

The accord says Russian National Oil Consortium, or Consorcio Ruso, will be a partner with Venezuela, said a Bloomberg report.

Consorcio Ruso was formed last year to work in Venezuelan oilfields and includes Rosneft, Surgutneftegaz, Gazprom, Lukoil, and TNK-BP.

Venezuela is auctioning minority stakes in the same sections of the Carabobo 1 Block.
Nineteen companies, including Consorcio Ruso, paid $2 million each for data on three proposed projects, one of which would pump 400,000 barrels per day from the same areas described in the treaty.

The accord does not mention the auction.

Other companies that may bid include Chevron, BP and Shell.

- Brewskie


  1. Chavez could wreck anything. But I imagine the Russkies might be tough enough to force him to honor contracts. You know, take him out if he screws around. Conoco can't do that.
    I am all for it. The more oil produced, the lower the price.
    B Cole

  2. Point taken. Russkies tough nature and Putin's cold stare may keep Chavez in line.