Rosneft to Buy Lukoil Venezuela Stake Amid $13 Billion Spree

OAO Rosneft, Russia’s largest oil producer, plans to invest $13 billion in five projects in Venezuela over five years and buy at least part of OAO Lukoil’s stake in a producing field in the South American nation.

Rosneft will buy half or the entire 8 percent stake that Lukoil owns in Junin 6 block in the Orinoco Oil Belt, Rosneft’s Venezuela country head Jerome Auzenne told reporters yesterday at an oil event in Maracaibo, Venezuela. “We might buy all of it or with might split it with” Gazprom Neft OAO, he said.

Rosneft will make the $13 billion investment as the company builds on the personal friendship between Russian President Vladimir Putin and Venezuelan authorities, he said.

After the deal, the Moscow-based company will raise its stake in the Junin 6 project to as much as 32 percent. State oil company Petroleos de Venezuela SA, known as PDVSA, owns 60 percent, while Gazprom Neft has 8 percent.

— With assistance by Anatoly Kurmanaev

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