facebook
twitter
search
search

Russia increases oil work in Venezuela

April 5, 2013 at 7:03 AM
Sign up for our Energy Newsletter

CARACAS, Venezuela, April 5 (UPI) -- Russian oil company Rosneft will work with local oil companies to get oil and associated gas out of the offshore Orinoco belt, the Venezuelan government said.

The Venezuelan Parliament approved a deal for a venture between a subsidiary of state-owned Petroleos de Venezuela and Rosneft. The companies will work to extract oil and natural gas from two offshore blocks in the Orinoco belt, Russia's state-owned news agency RIA Novosti reports.

The joint venture will operate offshore in a 131-square-mile area under the terms of a 25-year deal. Rosneft will invest $16 billion in the project which could yield commercial production levels of at least 400,000 barrels of oil per day.

Venezuela has some of the largest deposits of crude oil in the world. The Orinoco belt is considered one of the biggest reserve areas outside of the Middle East.

Related UPI Stories
Latest Headlines
Trending Stories
Einstein vindicated: Scientists find gravitational waves
Vatican: Bishops not required to report abuse to police
Nicola Griffin to appear in Sports Illustrated swimsuit issue at 56
Dementia rates decline in U.S., researchers unsure why
'El Chapo' drug empire's alleged financial operator arrested in Mexico