• 3 minutes 2nd Annual Great Oil Price Prediction Challenge of 2019
  • 6 minutes "Leaked" request by some Democrats that they were asking Nancy to coordinate censure instead of impeachment.
  • 11 minutes Trump's China Strategy: Death By a Thousand Paper Cuts
  • 14 minutes Democrats through impeachment process helped Trump go out of China deal conundrum. Now Trump can safely postpone deal till after November 2020 elections
  • 19 mins Shale Oil Fiasco
  • 6 hours USA v China. Which is 'best'?
  • 11 mins Everything you think you know about economics is WRONG!
  • 6 hours Wallstreet's "acid test" for Democrat Presidential candidate to receive their financial support . . . Support "Carried Interest"
  • 1 hour My interview on PDVSA Petrocaribe and corruption
  • 15 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 7 hours Quotes from the Widowmaker
  • 1 day True Confessions of a Billionaire
  • 6 hours Global Debt Worries. How Will This End?
  • 13 hours Petroleum Industry Domain Names
Alt Text

Natural Gas Set To Fall Even Further

Natural gas prices are likely…

Alt Text

The Natural Gas Nation Every Exporter Is Targeting

Germany is already the world’s…

Alt Text

Gas Prices Languish As Storage Falls To Near-Record Lows

Natural gas inventories are remarkably…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Can This Extraordinary Gas Deal Save Venezuela’s Ailing Economy?

Russia’s Rosneft has sealed a deal with the Venezuelan government for the development of two of its offshore gas fields for a period of 30 years. The Russian state major will have the rights to sell all gas it extracts from the fields—Patao and Mejillones—for a period of 30 years, including in the form of LNG.

The two fields, according to a Rosneft press release, hold a combined 180 billion cu m of natural gas. The target annual production rate the company’s local subsidiary, Grupo Rosneft, is looking at is 6.5 billion cubic meters of gas over a period of 15 years.

Rosneft already has a stable presence in Venezuela’s oil industry. It is partnering with PDVSA on five production projects, which have combined estimated reserves of 20.5 billion tons of crude, or 105.265 billion barrels. Under one of these projects, Petrovictoria, the companies earlier this year began test production in the Orinoco Belt—the place where most of Venezuela’s untapped crude oil reserves lie.

Rosneft reports that initial production from Petrovictoria averaged 472,000 bpd, which should increase to 800,000 bpd in the future. Last year, Rosneft’s total share of oil production from the joint projects in Venezuela reached 2.67 million tons, or 19.57 million barrels. Related: Yuan-Priced Crude Futures Could Arrive Before Christmas

The Russian company is one of the notable partners of Venezuela and its troubled state oil company. So much so that it sparked worry among U.S. legislators when PDVSA granted it the rights to a majority stake in its U.S. business, Citgo, as collateral for a loan Rosneft extended to the Venezuelan company last year.

The total loans Rosneft has extended to the Venezuelan company stand at US$6 billion, according to August calculations by Rosneft. Caracas also has debts to Moscow, which the latter agreed to restructure when it became clear last month it’s either that for Caracas or a default.

Venezuela’s total debt to international creditors is around US$140 billion.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment
  • Citixen Oil on December 18 2017 said:
    The world is asphyxiating in natural gas and they want to produce more thinking it'll save Venezuela ? There is so much NG they don't know what to do with it anymore. They are even flaring it off. Perhaps they can start filling balloons with it ? This would make for interesting parties.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play