Gazprom’s South American Deals

Via The Moscow Times, a report that Gazprom was among eight companies that signed deals to develop offshore gas fields with state-owned Petroleos de Venezuela.  As the article notes:

“…The deals included U.S.-based Chevron, Italy’s Eni, Portugal’s GALP Energia, Qatar Petroleum, Malaysia’s Petronas, Argentina’s Enarsa and Japanese companies Mitsui, Mitsubishi and Itochu, in a sign that Chavez’s government is open to some outside investment despite sweeping nationalizations.

The ceremony came a day after Gazprom and Total signed another deal to explore for gas with neighboring Bolivia, another country that is seeking to bolster its ties to Moscow.

Venezuela is home to South America’s largest natural gas reserves, but they have remained largely untapped while the country focused on oil production.

Officials expect joint investment over the next eight years to hit some $19.6 billion, Venezuelan Energy Minister Rafael Ramirez told reporters.

Under one agreement, Gazprom, Eni and Petronas signed a memorandum of understanding to help develop the offshore gas fields Blanquilla and Tortuga.

Chavez, who ejected U.S. majors ExxonMobil and ConocoPhillips from multibillion-dollar oil production projects last year, told the Chevron delegation, “We want to be friends with gringos.”

Earlier this month, Chavez expelled the U.S. ambassador and threatened to cut off oil supply to the United States.

Chavez, who is traveling to Moscow next week at the invitation of Prime Minister Vladimir Putin, is planning new oil projects with Russian companies and joint military exercises with Russian warplanes and ships in the Caribbean by December.

…During his visit, Sechin announced that Rosneft, LUKoil, Gazprom Neft, Surgutneftegaz and TNK-BP are looking to build a $6.5 billion refinery to process Venezuela’s tar-like heavy crude, RIA-Novosti reported.

On Thursday, Gazprom and Total signed a deal with Bolivia’s state energy company YPFB that could bring $4.5 billion into Bolivia, the Bolivian government said.

Total chief executive Christophe de Margerie said in Sochi on Friday that the deal was part of a global partnership with Gazprom…”



This entry was posted on Monday, September 22nd, 2008 at 5:46 am and is filed under Bolivia, ENI, Gazprom, Petróleos de Venezuela, Petronas, Russia, Total, Venezuela.  You can follow any responses to this entry through the RSS 2.0 feed.  You can leave a response, or trackback from your own site. 

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Wildcats & Black Sheep is a personal interest blog dedicated to the identification and evaluation of maverick investment opportunities arising in frontier - and, what some may consider to be, “rogue” or “black sheep” - markets around the world.

Focusing primarily on The New Seven Sisters - the largely state owned petroleum companies from the emerging world that have become key players in the oil & gas industry as identified by Carola Hoyos, Chief Energy Correspondent for The Financial Times - but spanning other nascent opportunities around the globe that may hold potential in the years ahead, Wildcats & Black Sheep is a place for the adventurous to contemplate & evaluate the emerging markets of tomorrow.