July 22, 2008

Russian, Venezuelan Companies Sign Agreements on Oil Cooperation

MOSCOW. July 22 (Interfax) - The companies TNK(RTS:TNKO)-BP, Lukoil, and Gazprom signed a number of agreements with their Venezuelan partners on Tuesday.

The documents were signed in the presence of Russian President Dmitry Medvedev and his Venezuelan counterpart Hugo Chavez.

Specifically, TNK-BP Management Executive Director German Khan and Venezuelan Energy and Oil Minister Rafael Ramirez, who is president of the state-run oil company Petroleos de Venezuela (PdVSA), signed an agreement on the joint exploration of the Ayacucho 2 block located in the Orinoco oil belt.

Lukoil President Vagit Alekperov and Ramirez have signed and agreement on the joint exploration of the Junin 3 block in the Orinoco heavy oil belt in eastern Venezuela.

Lukoil and PdVSA have also signed a memorandum of understanding.

Work on Junin 3, which has an area of 640 square kilometers, is part of the Magna Reserva strategic program, whose objective is to boost the country's proven oil reserves by 235 billion barrels. Lukoil is finishing the valuation and certification of the block.

Lukoil and PdVSA were planned to set up a joint venture to develop Junin 3. There was an initial plan to finish talks on forming a joint venture last year.

Gazprom Deputy Board Chairman Alexander Medvedev and Ramirez have signed an agreement between OAO Gazprom Latin America B.V. and PdVSA on certification and qualitative evaluation of the Ayacucho 3 block deposits.

(c) 2008 Daily News Bulletin; Moscow - English. Provided by ProQuest Information and Learning. All rights Reserved.