PDVSA signs deals to fund production hikes

State-owned Petroleo de Venezuela SA (PDVSA) has entered financial agreements with joint venture partners that it says will boost oil production in two areas.

PDVSA and ONGC Videsh of India signed agreements related to their Indovenezolana SA venture focused on redevelopment of San Cristobal oil field in the Orinoco Belt (OGJ Online, Apr. 11, 2008).

The agreements include a loan of as much as $318 million by ONGC Videsh to PDVSA and provide a mechanism for payment of dividends due ONGC Videsh. PDVSA owns 60% of Indovenezolana, ONGC Videsh the remainder.

The Indian company said a San Cristobal “remediation plan” calls for a production increase to 27,000 b/d from 18,000 b/d via waterflood.

Separately, PDVSA entered an agreement with DP Delta Finance BV to raise production by the Petrodelta SA joint venture to 110,000 b/d from 40,000 b/d in 5 years.

Petrodelta is a joint venture of Corporacion Venezolana del Petroleo SA, PDVSA, and Delta DP Finance, a private company that recently acquired interests formerly held by affiliates of Harvest Natural Resources Inc. (OGJ Online, June 30, 2016).

Petrodelta operates six fields in eastern Venezuela.

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