Russia, Venezuela to set up oil project during Medvedev visit
Agence France-Presse | 11/23/2008 10:52 PM
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CARACAS - Venezuela's state-run energy company will sign a deal with five Russian oil companies to produce and refine Venezuelan oil during a visit by the Russian leader this week, the energy minister said Sunday.
Russian President Dmitry Medvedev is due in Caracas Wednesday for a two-day visit which will coincide with the arrival of a fleet of Russian warships.
"We're going to sign a memorandum for a strategic alliance between Petroleos de Venezuela and a Russian consortium," said Energy Minister Rafael Ramirez, who also presides the state energy company.
"There's a process underway to increase cooperation between the Russian Federation and OPEC," Ramirez added.
The Russian consortium comprises Rosneft, Lukoil, joint Russian-British venture TNK-BP, Surguneftnegaz and Gazprom.
Oil reserves in Venezuela's eastern Orinoco region are already the focus of a series of projects by Russian oil companies together with the Venezuelan government.
Medvedev's visit is due to strengthen ties, including nuclear cooperation and talks on a joint reactor for peaceful purposes.
Venezuela and Russia were also due to finalize new arms purchases, including tanks and planes, according to sources from both countries.
The United States has slammed provocative Venezuelan President Chavez for his arms deals with Moscow.
Medvedev's visit will coincide with the arrival of a fleet of Russian warships that includes the nuclear-powered cruiser Pyotr Veliky (Peter the Great) for maneuvers in the Caribbean.
It would be the first time that Russian warships sail into the region since the end of the Cold War.
