PdVSA Brings in Foreign Funds

As the markets wait to see how Venezuela’s new presidential administration will secure international funding, state-owned oil producer PdVSA has agreed to new debt financing from three sources. PdVSA and Russia’s Rosneft have agreed to form a joint exploration venture in Venezuela, the two say, which includes a $1.5bn loan to PdVSA. The Petrovictoria crude oil and natural gas exploration and production joint venture is to be 40% owned by Rosneft and 60% by PdVSA’s Corporacion Venezolana del Petroleo (CVP) subsidiary. CVP will get the $1.5bn loan, and Rosneft also says it will make a $1.1bn payment in two installments to enter the JV, without giving additional details. The joint venture will as part of the Carabobo-2 project move forward the pair’s development of heavy oil reserves. Carabobo-2 North and Carabobo-4 West blocks are included in the project, with reserves estimated at 40bn barrels, Rosneft says. Separately, PdVSA has agreed to a $2bn loan from Chevron, to support the Petroboscan JV the two have, according to local news and wire reports citing remarks from Oil Minister Rafael Ramirez. The loan pays Libor+450bp, though no details on maturity were immediately available. Also, PdDVSA has agreed to a $1bn revolver from US oil services company Schlumberger. Officials at the companies were not available for comment on the terms of the JV or any of the financing.