Rosneft Paying $1.1 Billion To Join Venezuela Venture

Venezuelan Energy Minister Rafael Ramirez (right) speaks with Rosneft President Igor Sechin in Caracas on January 29.

The Russian energy giant Rosneft has agreed to pay $1.1 billion to Venezuela’s government to take part in a joint oil extraction venture in Venezuela.

The announcement was made by Venezuelan Energy Minister Rafael Ramirez.

The project seeks to develop oil fields in Venezuela’s eastern Orinoco River basin, which is believed to be rich in crude reserves.

Rosneft, whose chief, Igor Sechin, visited Venezuela in January, has previously pledged to invest billons of dollars to help develop Venezuela’s oil industry.

OPEC member Venezuela, home to some of the world’s biggest proven reserves, has said it hopes to rely on the expertise of Russian firms to extract oil and develop its industry.

Based on reporting by AFP and AP