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    Russia, Venezuela Agree on $14 Billion Investment in Oil, Gas Sphere

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    Russia and Venezuela have reached a deal on $14 billion worth of investments in oil and gas projects, Venezuelan President Nicolas Maduro has announced.

    MOSCOW (Sputnik) – The investment is aimed at doubling oil production in the coming years, Maduro said on Wednesday, after a meeting with CEO of Russian oil giant Rosneft Igor Sechin in Venezuela's capital, Caracas.

    Storage tanks stand in a PDVSA state-run oil company crude oil complex near El Tigre, a town located within Venezuela's Hugo Chavez oil belt, formally known as the Orinoco Belt
    © AP Photo / Fernando Llano
    Storage tanks stand in a PDVSA state-run oil company crude oil complex near El Tigre, a town located within Venezuela's Hugo Chavez oil belt, formally known as the Orinoco Belt

    The agreement concerns the development of the so-called Orinoco Belt — one of the richest oil reserves in the world — and projects in the gas sector, according to Maduro.

    Since last summer, global oil prices have drastically dropped due to oversupply in the market. In November, the Organization of the Petroleum Exporting Countries (OPEC) decided to maintain its oil production levels, contributing to a further drop in prices and severe crises in many oil exporting nations, particularly Venezuela.

    Russia and Venezuela have set up several joint ventures for the development of oil reserves in Venezuela, which are considered the largest in the world.

    The average annual oil price is the key parameter in estimating revenues of the Russian federal budget
    © RIA Novosti .
    Oil prices on the stock exchange and in the Russian budget

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    Tags:
    oil prices, Orinoco Belt, OPEC, Igor Sechin, Nicolas Maduro, Venezuela, Russia
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