Russian oil companies pay $1 billion for oil exploration rights in Venezuela
14 Sep 2009
A consortium of five Russian oil companies have paid Venezuela $1 billion bonus for the right to develop the Junin 6 block of heavy crude reserves in the Orinoco Belt, estimated to hold 235 billion bbl of heavy oil reserves.
An agreement for a joint venture to develop the heavy crude reserves in the Orinoco Belt was signed on Friday by Russian oil companies, Rosneft, Lukoil, Gazprom, TNK-BP and Surgutneftegaz with Venezuelan state oil company Petroleos de Venezuela SA (PdVSA).
Junin 6 block, one of the four blocks in the Orinoco Belt, is estimated to hold 53 billion barrels of heavy crude, making it one of the world's largest reserves and is capable of pumping between 400,000 and 450,000 barrels of crude a day.
The entire Orinoco oil belt, also known as the Orinoco Oil Sands, is reported to hold estimated reserves of 235 billion barrels of heavy crude making it to be one of the largest, if not the largest oil sand deposit in the world, along with the Athabasca Tar Sands in Alberta, Canada.
The consortium of five Russian oil companies will form a new company called National Oil Consortium (NOC) with each having 20 per cent stake.
Petroleos de Venezuela will hold a 60 per cent stake in the joint venture while the remaining 40 per cent will be held by the Russian oil firms through Consorcio Nacional Petrolero SRL.
The 25-year agreement was signed in Russia last week during a visit by Venezuelan President Hugo Chavez, where the revolutionary Latin American leader signed a series of energy and military cooperation agreements with Moscow.
