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Agreement For More Oil Production Signed Between Venezuelan And French Oil Firms

Agreement For More Oil Production Signed Between Venezuelan And French Oil Firms
According to the announcement made by Venezuelan President Nicolas Maduro recently an agreement worth 400-million-U.S. dollar was signed between Venezuelan state-owned oil company PDVSA and French company Maurel & Prom. Under the agreement, both the companies would jointly work to ramp up production of crude oil in the western state of Zulia in Venezuela.
"A good oil investment agreement has been reached to elevate the production of an important field in the state of Zulia," Maduro said at a press conference. The president also noted that this deal between the companies was a part of the broader strategy of the government to increase foreign investment in the country between 2019 and 2025.
There has been the start of a new dynamic in the petroleum industry at the beginning 2019 according to Maduro which "guarantees juridical, legal, and institutional security to all international investors".
The aim of the deal between the two companies was to increase production to reach a total of 2,500,000 barrels daily this year, according to the president of Venezuela.
PDVSA, about 60 per cent of the new company formed because of the agreement - Petro Regional del Lago, would be owned and controlled by the company, said its chief Manuel Quevedo earlier during the event to mark the singing of the agreement.
Saying that the new agreement between the two companies would "achieve all success", the president of Maurel & Prom - Michel Hochard, also said he was confident and optimistic about the project.
"We have a great responsibility, but we are also willing to live up to the great trust that has been placed in us," he said.
Together with Venezuelan Vice President Delcy Rodriguez and Quevedo, the aspect of staging a recovery of the Venezuelan oil and crude industry is currently being personally overlooked by Maduro, the president said. The oil industry of the country is the most important economic components of the company in terms of revenue generation and has been suffering for in recent times because of a lack of capital, an economic destruction of Venezuela and an astronomical rate of inflation in the country in recent years. Maduro is slated to continue as the president of Venezuela once again fro another 5 years starting on January 10.
The overdependence of the economy of the country on oil resulted in its economy being shattered in 2014 because of a very sharp drop of global oil prices to below $40 a barrel. And even though the oil prices have recovered quite a bit they are well off the recent highs. And in addition to the oil woes, the new government of Maduro is also slated to face a slew of other economic challenges which includes scarcity of necessary products because of a very high inflation.

Christopher J. Mitchell

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