Gazprombank to lend PDVSA $1 billion for Petrozamora oil project
BY PIETRO D. PITTS
CARACAS (Bloomberg) --Gazprombank, signed a $1 billion loan for the Petrozamora joint venture in Venezuela to increase crude production and expand infrastructure.
Petroleos de Venezuela SA and Gazprombank finalized the accord in Caracas attended by PDVSA President Rafael Ramirez and Gazprombank executives Boris Ivanov and Alexander Muranov. The eight-year loan will be used to almost double Petrozamora’s production to 104,000 bpd from 63,000 bpd, they said.
“The deal shows that despite the problems and challenges Venezuela is still able to secure enough financial support to move forward with its oil projects,” said Tissot Associate Consultant Roger Tissot in a phone interview from British Columbia.
PDVSA has a 60 % stake in the Petrozamora project in Western Venezuela while Gazprombank owns the rest. The venture was formed in May 2012 to explore and produce from oil fields Lagunillas Tierra and Bachaquero Tierra in western Venezuela’s Zulia state.
“Since constituting Petrozamora we have spent two years opening offices and building up personnel,” Gazprombank VP Muranov told reporters. “Now that we have the project financed we can concentrate on increasing production.” Ramirez, also Venezuela’s oil minister, said the financing accord with Gazprombank is one of five between international partners totaling $10 billion that aim to increase production to 678,000 bpd from 365,000 bbls.
Still, Ramirez told reporters Venezuela cut its 2014 oil output target to 3 MMbpd from 4 MMbpd to maintain its OPEC production quota for next year.