Construction on a $US600 million pipeline project in Venezuela may begin within three or four years following the signing of a Memorandum of Understanding between the Venezuelan state-owned Petroleus de Venezuela (PdVSA) and Russian oil transport company Transneft.
Under the agreement Transneft will construct the infrastructure required for the development of the Orinoco oil belt including a 1,300 km pipeline. Transneft has also said it plans to construct a second 700 km pipeline from the Juni-6 field in the Orinoco belt, which is set to be developed by a Russian consortium of Rosneft, Lukoil Holdings, Gazprom Neft, TNK-BP and Surgutneftegaz under a separate agreement with PdVSA.
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Transneft has indicated that it will form a joint entity with PdVSA, which will implement the pipeline project; however the partnership structure is yet to be decided.
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