A preliminary deal signed by Rosneft of Russia and Venezuelan PDVSA could lead to the development of an LNG export project.
Under the recent heads of agreement for joint development of the offshore natural gas project in Venezuela, the two companies will establish a joint venture for implementation of the large-scale project for production, treatment and sale of natural gas at the offshore fields Patao, Mejillones and potentially Rio Caribe in Venezuela, Rosneft said in a statement on Saturday.
Rosneft will be the operator of the joint venture with both companies holding a 50 percent stake.
The new agreement is the continuation of the memorandum the two companies signed in June last year and will see the two companies performing the feasibility study of the project.
It is expected that the production from the three fields could reach 25 million cubic meters per day providing the potential to develop an LNG export project in Venezuela.
LNG World News Staff