Rosneft will produce gas in Venezuela

Russia is becoming the largest investor inVenezuela, surpassing China which had great ambitions in this country. The Russian group Rosneft signed documents on its participation in offshore gas projects in Venezuela, confirmed the CEO of Igor Sechin.

lI is currently the feasibility study concerning deposits in different areas of the seabed. Documents on the development of the deposits in the seabed have yet been signed. Rosneft has already mentioned its intention to invest $ 10 billion in projects already underway in the country.

Russian companies will soon invest more than $ 17 billion in the Venezuelan oil sector. Russia will become the largest foreign investor in the country, exceeding Chinese companies. In recent years, China, as Russia, is trying to strengthen its positions in the country. However Beijing has created only a single large sino-venezuelienne venture called Petrosinovensa. The PRC spent all $ 4 billion the year last to increase the production capacity of the latter. The Russian company Rosneft agreed to invest $ 10 billion in various projects in the Venezuela. In addition, the company may soon retrieve the gas in the Bolivarian Republic: a contract on the study of the gas deposits has been signed between the two countries. These agreements are an important step for the international image of Rosneft, considers Anatoly Dmitrievskii, Director of the Institute of  oil and gas at the Russian Academy of sciences.

"Engage in the extraction of oil and gas on the seabed of Venezuela is very brave. This project will enable Russia to settle on the South American continent, which has been delayed in terms of technology in the oil and gas sector. "Extraction of oil in Venezuela by Rosneft will allow the company to provide the oil and gas in Venezuela, as well as to develop its network of subsidiaries in the world.

It's been twenty years that Venezuela seeks unsuccessfully to highlight the deposit that is now interesting Rosneft. Caracas has announced tender for this project on several occasions, offering investors 40 per cent of the production in Exchange. However, the authorities found no candidate that suits them. They were eliminated from the tender French Total and Norwegian Statoil and the Anglo-Dutch Shell. The Rosneft group is determined to complete this project and to develop a deposit containing gas reserves estimated at 150 billion cubic meters. The company has a year to study the documents and the terms of the contract. However, experts fear that the 'gas dream' of Venezuela faces political problems. Due to the illness of the leader of the country, Hugo Chavez, the question of the change of regime is more and more present. If Hugo Chavez supports Russian projects, nothing says that his successor will give go-ahead to their pursuit. However, change or not, the $ 17 billion invested by the Russia in the country's economy will not disappear from one day to the next, assured the president of the Union of producers of oil of Russia Gennady Schmal.

"The future of these projects does not depend on one person. International law exists, just like commercial relations. We also have activities outside Venezuela and generally, when questions of this type occur, they found their answer in contracts, and the problem is thus solved. I guess that there may be a single risk - geological. Venezuela occupies the first or second place in terms of gas reserves, along with the Canada. That means that the reserves of hydrocarbons are very important. This leaves hope that these investments will be profitable for Russia.

 

Other major players of the Russian oil market cater to Caracas to find interesting oil projects. In addition to traditional companies, such as Lukoil and Surgutneftegaz,  are also ready to launch projects in Latin America. According to Igor Setchine, Zarubejneft could participate in joint projects to increase oil production from existing fields. For the CEO of Rosneft, Venezuela will be the number one priority among all foreign projects of the company.