FILE PHOTO: The Rosneft brand is pictured on a security helmet in Vung Tau, Vietnam April 27, 2018. REUTERS/Maxim Shemetov

MOSCOW (Reuters) – Reuters estimates that after sinking greater than $9 billion into Venezuela in loans, acquisitions and undertaking spending since 2010, Rosneft, which is majority owned by the Russian state, has but to point out a revenue.

On the finish of 2018, Rosneft had spent roughly $1.5 billion extra in Venezuela than it had earned within the type of oil allotted to it as dividends, in line with Reuters’ calculations. This determine is reached by calculating the worth of oil Rosneft acquired from its three way partnership initiatives and subtracting from that excellent loans Rosneft issued to PDVSA, official funds Rosneft made to Venezuela for entry to grease fields, Rosneft capital expenditure on the ventures, and the price of extracting Rosneft’s share of the oil. The price figures are primarily based on a benchmark for operational expenditure in Venezuela of $15 per barrel.

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Rosneft didn’t reply to a request for remark.

The Reuters estimate of Rosneft’s monetary shortfall in Venezuela might be conservative as a result of it doesn’t have in mind tax Rosneft needed to pay in Venezuela. This tax fee just isn’t publicly disclosed, however Caracas usually takes a minimum of 50 % of the worth of every barrel of oil.

The estimate additionally doesn’t embrace situations the place PDVSA, in line with paperwork reviewed by Reuters, failed to provide Rosneft the share of oil manufacturing at joint initiatives that the Russian firm believed it was due. Nor does it embrace circumstances the place Rosneft needed to sink additional capital expenditure into fields and plug surprising holes within the joint ventures’ steadiness sheets.

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In April final yr, power consultancy Wooden Mackenzie stated its forecast for peak manufacturing on the Junin-6 discipline was now 120,000 barrels per day – half as a lot as Rosneft’s inner paperwork forecast again in 2015, and simply over 1 / 4 of the 450,000 barrels initially predicted.

The Boqueron discipline and Petroperija joint ventures have been loss-making, Rosneft stated in its monetary report for 2018.

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On the Patao, Mejillones and Rio Caribe offshore fuel prospects, which Venezuela signed over to Rosneft in 2017, there was no growth plan or infrastructure plan in place, Wooden Mackenzie stated final yr.

The Petromonagas undertaking – the place Rosneft had deliberate to extend output – has additionally been falling wanting hopes, inner PDVSA paperwork present. As of final July, it was pumping much less oil per day than it had in 2015.

Reporting by Christian Lowe and Rinat Sagdiev; enhancing by Janet McBride, Mike Collett-White and Richard Woods

Our Requirements:The Thomson Reuters Belief Ideas.

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