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)

INTERNAL SECURITY

REUTERS SHOWCASE

Setback For Sahara

Setback For Sahara

Supreme Court defers verdict on Sahara plea to raise more debt on hotels  Full Article 

SpiceJet Crisis

SpiceJet Crisis

SpiceJet says fleet grounded on lack of fuel  Full Article 

Drug Patents

Drug Patents

Novartis sues Cipla over respiratory drug Onbrez   Full Article 

Boost for Tata Steel

Boost for Tata Steel

Tata Steel restarts key iron mines amid shortage  Full Article 

Reuters Poll

Reuters Poll

BSE Sensex to hit 32,980 by December 2015  Full Article 

India Outlook

India Outlook

ADB trims growth forecasts for developing Asia, says India to grow 5.5 pct in 2014  Full Article 

Real Estate

Real Estate

HDFC to raise $500 mln real estate private equity fund - sources  Full Article 

Banking Sector

Banking Sector

Japan banks to bulk up India presence on improving ties   Full Article 

U.S. Spending Bill

U.S. Spending Bill

Obama signs bill $1.1 trillion government spending bill  Full Article 

Reuters India Mobile

Reuters India Mobile

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