PdVSA, Gazprombank to form JV in Zulia
CARACAS (Dow Jones)-Venezuelan officials said Wednesday that they have authorized the formation of a new joint venture with Russia's Gazprombank to work on fields in the South American country's oil-rich western state of Zulia.
It's the latest agreement between Russia and Venezuela, whose socialist president, Hugo Chavez, has looked to strengthen economic and political ties between the two countries.
Venezuela said state energy giant Petroleos de Venezuela, or PdVSA, will take a 60% stake in the projects while Gazprombank, a unit of OAO Gazprom (GAZP.RS), will have the remaining 40%.
The 25-year licensing agreement allows for the joint venture to explore and produce oil and gas at two fields around Bachaquero in Zulia.
A statement from the Venezuelan National Assembly had earlier said that both parties were looking to develop fields in the country's vast Orinoco heavy oil belt, considered to be one of the world's largest and mostly untapped hydrocarbons reserves.
-Kejal Vyas, Dow Jones Newswires
02/08/2012