PdVSA to partner with Russian companies to run nationalized plants

Aug 08, 2009 02:00 AM

The state-run oil company Petroleos de Venezuela (PdVSA) will not assume all the gas compression activities of the oilfields located in the eastern part of the country that were nationalized this year.
The Venezuelan oil company recently signed a partnership agreement with Gazprom Latin America Venezuela to launch these operations.

In May, the State-run oil company took control of the gas compression units in Venezuela. It also took charge of 74 oil service companies after the passage of the Organic Law which Reserves Goods and Services Connected to Hydrocarbons Primary Activities for the State arguing that these activities are strategic and they should not be in the hands of third parties.
The measure also allowed PdVSA to save resources related to these operations.

The agreement signed between PdVSA Servicios and Gazprom provides for the establishment of an oil and gas service company in Venezuela, with technology transfer and technical assistance.