Venezuela secures $ 600 mm pipeline project
Construction on a $ 600 mm pipeline project in Venezuela may begin within three or four years following the signing
of a Memorandum of Understanding between the Venezuelan state-owned Petroleos de Venezuela (PdVSA) and Russian oil
transport company Transneft.
Under the agreement Transneft will construct the infrastructure required for the development of the Orinoco oil belt
including a 1,300 km pipeline.
Transneft has also said it plans to construct a second 700 km pipeline from the Junin-6 field in the Orinoco belt,
which is set to be developed by a Russian consortium of Rosneft, LUKoil Holdings, Gazprom Neft, TNK-BP and
Surgutneftegaz under a separate agreement with PdVSA.
Transneft has indicated that it will form a joint entity with PdVSA, which will implement the pipeline project;
however the partnership structure is yet to be decided.
