London, United Kingdom (PressExposure) November 20, 2009 -- The Venezuelan governmentâs agreements with Russia and China will boost the oil and gas investments within the country. Petroleos de Venezuela SA (PDVSA), the state owned Oil and Gas Company and Russiaâs National Oil Consortium have signed a memorandum of understanding on cooperation for the exploration of oil reserves in the Orinoco belt. Closely following this agreement, Venezuela has signed an agreement with China for developing its resources in the Orinoco belt.
The investments are intended to develop Venezuelan oil and gas fields. The Latin American country depends majorly on oil and gas exports and its declining oil revenues since the global recession as well as confiscation of foreign assets due to nationalization has hampered the fresh investments for oil and gas explorations within the country.
The MOU is anticipated to revive the ailing oil and gas industry. Russian National Oil Consortium which comprises of TNK-BP, Rosneft, Lukoil, Gazprom Neft, and Surgutneftegaz is likely to fund infrastructure investment worth $600 million initially. The Russian consortium will support the development of new blocks along with Junin-3 Block, Ayacucho-2 Block and Ayacucho-3 Block, which were being handled by Russian NOCs. On the other hand, China has agreed to invest close to $ 16 billion over 3 years in the Orinoco belt.
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