State-backed Russian oil giant Rosneft has been offered a stake in a joint oil venture by Venezuelan counterpart PDVSA.
Editor’s Remarks: The move by PDVSA, Venezuela’s state-owned oil producer, is a strong sign of the country’s troubled economic situation – as well as Russia’s growing influence in its market. If Rosneft takes up the offer, it would have a 10% stake in a major venture in the Orinoco Belt extra-heavy crude zone, with PDVSA notching its share down to 60% and America’s Chevron Corp keeping its at 30%. PDVSA will be keen for Rosneft to accept given the huge sums it needs to raise to cover bond payments and debts to providers (Rosneft has already lent it between $4bn and $5bn). The country’s oil ministry, meanwhile, is desperate for foreign reserves to pay off its own debt costs.
What to watch: Rosneft, PDVSA, Nicolas Maduro, Nelson Martinez, Chevron Corp, Petropiar