Rosneft, PDVSA Sign Agreement For Offshore Natural Gas Project In Venezuela

(RTTNews) - Rosneft (ROSN.L) announced the company, and Petróleos de Venezuela S.A. or PDVSA, the state-owned corporation of the Bolivarian Republic of Venezuela, have signed Heads of Agreement to establish a joint venture for implementation of the large-scale project for production, treatment and sale of natural gas at the offshore fields Patao, Mejillones and potentially Rio Caribe in Venezuela. The gas production at the three fields is expected to be up to 25 million cubic meters per day. The parties each have 50% equity share in the joint venture.

The Heads of Agreement is concluded in elaboration of the Memorandum on the joint projects development that was signed by the parties in June 2015.

Separately, Rosneft announced the company will increase its stake in Petromonagas JV with PDVSA to 40%, and PDVSA participation will be reduced to 60%. Currently, Rosneft owns 16,67% in the joint venture. The company will invest $500 million in the JV to raise its stake.