PDVSA inks financing deals

Petróleos de Venezuela (PDVSA) late on Friday announced financing agreements totalling close to USD 1.45 billion in an effort to increase production.

Through USD 1.13 billion in financing provided by DP Delta Finance, PDVSA will work to increase production of its Petrodelta joint venture with Delta Petroleum from 40,000 bopd to 110,000 bopd.

In a separate agreement, India’s Oil and Natural Gas Corporation (ONGC) will offer USD 318 million in financing to help its joint venture with PDVSA, Petrolera Indovenezolana, double output from the San Cristobal field to 40,000 bopd.

“In the middle of the worst crisis of low [oil] prices in the last four decades,” the government said in a statement, “financing agreements signed by state oil companies are an unequivocal demonstration of their capacity and resources.”

Over the past two years, PDVSA has secured USD 10.7 billion in financing to help increase production. Working through eight joint ventures, the company is targeting 435,000 bopd over the coming years.