Russians sign accords in Nicaragua, Venezuela

Eric Watkins
OGJ Oil Diplomacy Editor

LOS ANGELES, Aug. 4 – The Nicaraguan government, following the lead of Venezuela, has signed an agreement allowing exploration by a Russian consortium.

"The concessions include the Caribbean and Pacific, both offshore and on land," said Francisco Lopez, president of the Nicaraguan Petroleum Enterprise. He said a technical board would be installed to analyze implementation of the agreement.

Russia’s Deputy Prime Minister Igor Sechin said the proposed exploration in Nicaragua would be carried out by the Russian National Oil Consortium, created on Oct. 8, 2008, and comprising Rosneft, Gazprom, Lukoil, TNK-BP, and Surgutneftegaz.

Sechin did not say how much Russia could invest in Nicaraguan exploration, saying only, "We must first carry out in-depth studies to calculate the investments.”

Nicaragua last September became the only country to join Russia in recognizing the independence of Abkhazia and South Ossetia from the small Caucasus state of Georgia.

A month earlier, Russian military forces had invaded Georgia, a former Soviet republic, and forced the shutdown of major international oil and gas pipeline operations.

Prior to his visit to Nicaragua, Sechin also met with Venezuelan President Hugo Chavez and signed a range of economic agreements including one between OAO Gazprom and Petroleos de Venezuela on a joint venture in oil and gas services.

The Venezuelan newspaper El Universal reported the joint firm will take over some gas compression plants formerly operated by Exterran Holdings Inc.

Earlier this year, according to El Universal, PDVSA nationalized nearly 50 gas units of Exterran after a new law gave the state-run firm control over the operation of several oil services, such as gas compression and gas injection, as well as transport of oil workers and equipment in Lake Maracaibo.