December 5, 2020

Venezuela reduces debt with Russia's Rosneft to 800 million in the third quarter

Petroleos de Venezuela (PDVSA) has reduced its debt to Rosneft, the largest Russian oil company, to 800 million dollars during the third quarter, according to a presentation by the company on the occasion of its financial results until September.

According to Rosneft, state-owned PDVSA had a debt of 1,100 million dollars at the end of the second quarter, so it has returned 300 million dollars to the Russian oil company in the third quarter.

At the end of 2017, PDVSA still had a debt owed to Rosneft of 4,600 million dollars, an amount that has been gradually reducing over the last years.

Thus, in the first quarter of 2018 the amount owed stood at 4,000 million dollars, at the end of June of that year at 3,600 million, as of September 30 at 3,100 million and at the end of the year on December 31 at 2,300 million.

Already in 2019 its debt to Rosneft decreased until the end of March to 1,800 million and at the end of the second quarter to 1,100 million.

In the contingencies section of the presentation of its financial results, the Russian oil company indicates that "it continuously monitors the projects that are implemented in Venezuela with its participation".

Also remember that business relationships with PDVSA are based on existing contracts in accordance with applicable law, including international law.

Last June, Rosneft indicated that in 2018 the oil extraction in Venezuela increased by 7%, despite the "difficult situation" in the Andean country, in reference to the US sanctions imposed on Venezuela and that directly affect the assets of the Venezuelan oil company.

For this year, I did not expect significant decreases in oil extraction in joint projects.

Rosneft participates in Venezuela in the Petromonagas (40%), Petromiranda (32%), Petroperijá (40%), Boquerón (26.67%) and Petrovictoria (40%) projects.

The Russian oil company also owns 100% of the gas exploration project of the Mejillones and Patao deposits, 100% of the Precision Drilling oil services company and 51% of the Perforosven company.

. (tagsToTranslate) Venezuela (t) reduces (t) Rosneft (t) millions (t) quarter

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