Putin approves supporting Rosneft’s gas projects in Venezuela

Russian President Vladimir Putin © Mikhail Metzel/TASS. Sketched by the Pan Pacific Agency.

MOSCOW, Jun 13, 2019, TASS. Russian President Vladimir Putin has approved the government’s proposal to support Rosneft’s shale gas projects in Venezuela (Patao and Mejillones) and ordered to sign a protocol on making amendments to the agreement with Venezuela on cooperation in the sphere of implementing joint strategic projects from 10 September 2009. The president’s order was published on the official website of legal information, reported the TASS.

The Russian government earlier suggested to add Rosneft’s gas projects in Venezuela to the agreement between Moscow and Caracas. According to the document, Russia and Venezuela will create favorable and non-discriminatory conditions and provide assistance to Rosneft and its subsidiary Grupo Rosneft S.A. in the implementation of the project on developing shale gas in Venezuela’s Patao and Mejillones.

The document also says that Venezuela will not tax Rosneft, as well as its suppliers and contractors.

At the end of 2017, the Venezuelan authorities provided Rosneft’s subsidiary with a license for developing shale gas in Patao and Mejillones for 30 years. It was also planned to establish a joint company with PDVSA to extract, process and monetize natural gas from these deposits. The target output is 6.5 bln cu m of gas per year for 15 years.

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