Venezuela awards Russia's Rosneft two major offshore gas fields

Tuesday, December 19th 2017 - 11:38 UTC

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Venezuela has awarded licenses to a unit of Russian oil major Rosneft to develop two offshore gas fields, Rosneft said in a statement.Venezuelan President Nicolas Maduro signed the deal during a visit to Venezuela by Rosneft CEO Igor Sechin, it said. Read full article

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Demantoid Garnet
No surprise here. Venezuela can't keep it's own oil and gas rigs operational, so in comes Russia. They basically own the two oil fields now. They can bring in the equipment, develop and operate the fields (with their own people), then sell 100% of the output for themselves. A little continuing corrupt “cash-on-the-side” helps to lubricate everything... and it will be in Rubles, not Bolivars.

Actually, I'm surprised the Chinese haven't done the same thing here.

The Venezuelan government gets a very temporary cash infusion, enough to help prolong their control... and the citizens' misery. And when you consider the 30-year license term, the future value of the oil and gas will be lost to the people for a generation.

People as yet unborn will suffer from this agreement.

Best wishes everyone!

D. Garnet
Dec 20th, 2017 - 12:49 pm - Link - Report abuse 0
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