LUKoil to transfer Venezuelan assets

MOSCOW, Sept. 21 (UPI) -- Russian oil producer LUKoil announced it might hand over its Venezuelan assets to a national consortium in exchange for its exploration outlay.

LUKoil and the State Petroleum Co. of Venezuela signed an agreement last July to conduct joint studies at the Junin-3 block in the Orinoco oil reserve in central Venezuela.

Vagit Alekperov, the head of LUKoil, said his company would transfer its assets to Venezuelan partners if a national consortium were formed, RIA Novosti reports.

"We, Gazprom and TNK-BP confirm that if a joint venture is set up, we will be ready to transfer all our assets (in Venezuela) to the consortium," he said.

LUKoil, the largest independent oil producer in Russia, said it estimates the Junin-3 block to hold more than 4 billion barrels of oil reserves.

Rafael Ramirez, the Venezuelan energy minister, said he and his Russian partners planned to invest $20 billion in development at Junin-6.

Ramirez added the Russian companies paid $1 billion in bonuses to take part in production in the Orinoco field.

LUKoil and its Russian partners plan to form a joint venture in Venezuela for oil production by the end of the year.