Putin and Chavez agree on oil deals

Macau News.Net
Saturday 3rd April, 2010

Russian Prime Minister Vladimir Putin has been in Venezuela over the weekend for his first visit to the country.

He has met with President Hugo Chavez, who has visited Russia eight times during his 11 years in power, to strengthen ties with the country he sees as the main rival to the US.

He has in the past offered Russia stakes in Venezuela’s untapped oil reserves.

This weekend, President Chavez and Prime Minister Putin have been discussing oil agreements between Petroleos de Venezuela and a group of Russian oil companies, which have agreed to work as minority partners with the Venezuelan oil giant.

The Russia/Venezuela oil partnership is due to develop a heavy oil block in the Orinoco Belt with expected investments of about US$18 billion.

Production should begin at 50,000 barrels per day this year, quickly rising to 450,000 barrels per day.

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