PDVSA signs deals to fund production hikes
State-owned Petroleo de Venezuela SA (PDVSA) has entered financial agreements with joint venture partners that it says will boost oil production in two areas.
The agreements include a loan of as much as $318 million by ONGC Videsh to PDVSA and provide a mechanism for payment of dividends due ONGC Videsh. PDVSA owns 60% of Indovenezolana, ONGC Videsh the remainder.
The Indian company said a San Cristobal “remediation plan” calls for a production increase to 27,000 b/d from 18,000 b/d via waterflood.
Separately, PDVSA entered an agreement with DP Delta Finance BV to raise production by the Petrodelta SA joint venture to 110,000 b/d from 40,000 b/d in 5 years.
Petrodelta is a joint venture of Corporacion Venezolana del Petroleo SA, PDVSA, and Delta DP Finance, a private company that recently acquired interests formerly held by affiliates of Harvest Natural Resources Inc. (OGJ Online, June 30, 2016).
Petrodelta operates six fields in eastern Venezuela.