Rosneft, PDVSA to study new project to develop Venezuelan gas

Rosneft and PDVSA signed a new heads of agreement to establish a joint venture for a large-scale project for the production, treatment and sale of natural gas at the Patao, Mejillones and potentially Rio Caribe offshore fields 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.

The parties will each have 50% equity share in the joint venture, while Rosneft will be the project operator, according to the agreement.

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

Officials say the conclusion of this gas agreement marks an important step for both companies. Specific investment terms were not disclosed.

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