Russia visit: Venezuelan president Hugo Chavez and Russian president Dmitry Medvedev
Russia trio eye Venezuela deals
Russian producers Lukoil, TNK-BP and gas giant Gazprom will sign new energy deals with Venezuela during President Hugo Chavez visit to Russia, a Kremlin source said.
The Russian trio is expected to sign agreements with Venezuela during Chavez's visit to Moscow.
An agreement has been signed by Lukoil chief executive Vagit Alekperov and PDVSA chief executive Rafael Ramirez Carreno on a joint study of Junin-3 Block in the Orinoco heavy oil belt in Guarico state, Venezuela.
The agreement was signed in the presence of the leaders of the Russian Federation and Bolivarian Republic of Venezuela Dmitry Medvedev and Hugo Chavez Frias.
A joint study will be performed to evaluate the project pertaining to production of extra heavy oil, its further refining on the territory of Venezuela and export overseas.
Expenses for the study will be shared by the parties on an equal basis.
The agreement will be effective within two years with a possibility of extension.
The previous agreement on Junin-3 was signed by Lukoil and PDVSA on 12 October 2005 for the term of three years.
Obligations on this agreement, related to quantitative assessment and certification of heavy oil reserves in the area of 678 square kilometres, have been fully discharged.
The results of these studies were certified by Ryder Scott, independent engineering company, and officially approved by the Ministry of Energy and Petroleum of Venezuela.