Transneft, PdVSA Agree $600 Million Pipeline Project In Venezuela
11 September 2009 - 9:04PM
Dow Jones News
Russian oil pipeline operator OAO Transneft (TRNFP.RS) plans to
start building a $600 million oil pipeline in Venezuela within
three to four years, the company said Friday after signing a
memorandum of understanding with Venezuela's state oil company.
Under the memorandum signed with Petroleos de Venezuela SA, or
PdVSA, Transneft will build infrastructure for development of the
Orinoco oil belt, including a 1,300 kilometer pipeline.
The memorandum was signed Thursday during a visit by Venezuelan
President Hugo Chavez to Moscow alongside a number of other energy
deals, including an agreement between PdVSA and a consortium of
Russian oil companies to develop the Orinoco oil belt, which holds
an estimated 235 billion barrels of heavy crude oil.
An investment plan will be drawn up within a year, Transneft
said. PdVSA estimates costs of the 1,300 kilometer pipeline at $600
million.
Thursday, PdVSA and the Russian consortium of OAO Rosneft
(ROSN.RS), OAO Lukoil Holdings (LKOH.RS), OAO Gazprom Neft
(SIBN.RS), TNK-BP Ltd. and OAO Surgutneftegaz (SNGS.RS) also signed
a separate memorandum to develop the Junin-6 field located in the
Orinoco belt. A joint venture is expected to be set up by the end
of this year.
Transneft said it plans to build a 700 kilometer pipeline from
the Junin-6 field.
Company Web site: www.transneft.ru
-By Jacob Gronholt-Pedersen, Dow Jones Newswires; +7 495 937
8445; jacob.pedersen@dowjones.com