Russia's Surgut says leaves Venezuela oil consortium

Wed Nov 7, 2012 1:14pm IST

Stocks

   

* Analysts say project is aimed at forging political ties

* TNK-BP also decided to leave

MOSCOW Nov 7 (Reuters) - The board of Russia's fourth-largest crude producer Surgutneftegaz voted in favour of leaving the Russian consortium developing Venezuela's Orinoco belt, its last foreign project, the company said on Wednesday.

The consortium owns a 40 percent stake in the project, which started oil production in September, while Venezuela's state oil company PDVSA has 60 percent.

Anglo-Russian oil company TNK-BP has also decided to leave the project to focus on its own assets in the country and started talks with Russian top crude producer Rosneft , also a partner in the project, on selling its share in the consortium.

Sources said Surgut is also likely to sell its share to Rosneft.

LUKOIL and Gazprom Neft are other Russian companies involved in the consortium, which analysts said was mainly aimed at forging ties with Venezuelan socialist President Hugo Chavez rather than yielding substantial profits.

The Junin 6 oil block is one of the most advanced new projects in Venezuela's Orinoco extra heavy crude belt, where Chavez's government is focusing its attention for future production increases. (Reporting by Vladimir Soldatkin; Editing by Alison Birrane)

Banking

REUTERS SHOWCASE

OPEC Oil Talks

OPEC Oil Talks

Saudi, Russia pre-OPEC talks yield no oil output cut  Full Article 

SAARC Summit

SAARC Summit

China looms over SAARC summit in the Himalayas  Full Article 

Microsoft in China

Microsoft in China

Microsoft to pay China $140 million for 'tax evasion'   Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage