OAO Rosneft and Petroleos de Venezuela SA (PDVSA) signed a heads of agreement to establish a joint venture for a natural gas project offshore Venezuela.
Rosneft said it will be operator in the 50-50 JV for Patao, Mejillones, and “potentially Rio Caribe” and that the three areas could produce as much as 25 million cu m/day of gas. An in-depth feasibility study is planned.
The HOA follows a memorandum signed in St. Petersburg in June 2015.
The companies have five other upstream projects in Venezuela (OGJ Online, July 30, 2014). In the PetroMonagas joint venture that produces extra heavy crude, Rosneft plans to raise its stake to 40% from 16.67% with PDVSA’s share being reduced to 60%.