Venezuela Extends Russian Oil Joint Venture Agreements By 15 Years

The Venezuelan parliament has approved a 15-year extension of joint ventures between Venezuelan state-owned company PDVSA and Russian oil firm Roszarubezhneft, according to a statement on the Venezuelan National Assembly’s website.

The extension, announced on Thursday (November 20), allows the joint ventures operating oilfields in western Venezuela to continue until 2041, with lawmakers estimating roughly 91 million barrels of crude over the period and investment of about US$616 million. The move follows a broad strategic partnership signed earlier this year by Russian President Vladimir Putin and Venezuelan President Nicolas Maduro.

Roszarubezhneft was created in 2020 after the US sanctioned two subsidiaries of state oil firm Rosneft for helping market Venezuelan crude, prompting Rosneft’s retreat from the country. The new state-owned firm soon acquired Rosneft’s Venezuelan assets, allowing Russia to maintain its presence in the sector.

Zarubezhneft’s main activities are exploration, development, and operation of non-Russian oil and gas fields; design, construction, and operation of oil refineries, tank farms, and pipeline systems; application of advanced Russian technologies for oil field development; testing and export of modern hi-tech methods for oil recovery enhancement; and export-import operations for technological equipment supply.

Both Russia and Venezuela have faced years of Western sanctions. Venezuela has been subjected to sweeping US measures targeting PDVSA, the financial system, and senior officials, while Russia has faced escalating Ukraine-related sanctions since 2014. Caracas has also remained one of Moscow’s most vocal allies, regularly condemning Western sanctions against Russia and expanding diplomatic and economic cooperation across multiple sectors.

The extension of oil cooperation also comes against the backdrop of increasing US pressure on Venezuela. In recent months, the Pentagon has deployed warships to the Caribbean and has carried out controversial strikes on small boats it claims are involved in drug smuggling from Venezuela. The White House maintains that Maduro is an illegitimate, cartel-linked ruler, fueling speculation that direct military action might be imminent.