MOSCOW (MRC) -- State oil company PDVSA and Spain's Repsol are discussing a USD1.2 billion financing deal for a joint venture in Venezuela, reported Upstreamonline with reference to a top government official's statement.
The announcement was made by Petroleum Minister Rafael Ramirez during a visit to Caracas by Repsol boss Antonio Brufau, Reuters reported.
The funds would go to the Petroquiriquire joint venture, which runs mature oil fields in the east and west of the South American OPEC member country, the news wire added.
Ramirez said the financing was aimed at increasing the joint venture's output by 75,000 barrels per day, from a total of about 40,000 bpd currently produced at its three fields.
If signed, the new deal would add to about USD10 billion in loans that PDVSA has agreed this year, including with Chevron and Schlumberger of the United States and China's CNPC, as it seeks to boost stagnant national oil output of some 3 million bpd.
Repsol is working with PDVSA in an offshore natural gas project and is a key part of a consortium seeking to tap Venezuela's vast Orinoco extra heavy crude belt.
Separately, the minister said he would also be discussing financing with visiting executives from Italy's ENI in November for their joint ventures.
As MRC informed earlier, Repsol is planning a comeback in Asia after divesting most of its assets in the region in the 1990s to invest in Argentina. Repsol was forced to exit Argentina last year after the government there expropriated a controlling stake in its Argentinian subsidiary YPF. Most of the company's revenue and production is generated from its businesses in Latin America, the North Sea and US, but the company is now rebalancing its portfolio by increasing its focus on West Africa and Asia-Pacific.
Repsol S.A is an integrated Spanish oil and gas company with operations in 28 countries. The bulk of its assets are located in Spain.
MRC