May 24 (Bloomberg) -- State-owned Petroleos de Venezuela SA will supply OAO Rosneft, Russia’s state-run company, with $2 billion in crude and oil products, Rosneft said today.
Rosneft will make a “pre-payment” of $2 billion to PDVSA in exchange for more than 1.6 million tons of oil and 7.5 million tons of oil products during a five-year period, Rosneft said in a statement posted on its website. On March 7, Venezuela signed a memorandum of understanding with Rosneft for $2 billion in financing for oil projects in Venezuela.
“This agreement represents a new phase of partnership between Rosneft and PDVSA,” Rosneft CEO Igor Sechin said in the statement. “Following the partnership in the upstream sphere our companies start to cooperate in the sphere of trading.”
Rosneft is the world’s largest publicly traded oil company by output and reserves.
Venezuela is seeking external financing as it combats shortages of goods and medicines and 59 percent inflation in a country with the world’s biggest oil reserves.
Rosneft and PDVSA, as the state company is known, have 5 oil joint ventures in Venezuela, the company said.
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