Russia, Venezuela set up $20 billion oil venture

MOSCOW (Reuters) - Russia and Venezuela will invest $20 billion over 40 years in a giant Venezuelan oilfield to produce almost half a million barrels per day of oil that can be shipped to U.S. markets, Russian officials said on Monday.

A consortium of Russian firms and Venezuela's state-run PDVSA agreed on Monday to set up a venture to tap the Junin 6 oil field in the Orinoco oil belt, which Venezuela says has the world's largest hydrocarbon reserves.

"I don't rule out it (supplies) could be to U.S. markets," Russia's top energy official, Deputy Prime Minister Igor Sechin, said after the signing ceremony overseen by Prime Minister Vladimir Putin.

Sechin said production could reach 450,000 barrels per day.

The deal heralds close political and economic cooperation between Moscow and Caracas, which has previously bought Russian weapons and recognized Georgia's pro-Kremlin breakaway regions of Abkhazia and South Ossetia.

"After today's agreement is ratified by the parliament of Venezuela, the consortium of Russian firms will transfer a bonus amounting to $600 million," Putin said.

A U.S. government report showed last month Venezuela's Orinoco oil region could contain about 513 billion barrels of crude that could technically be recovered by energy companies if cost were not an issue, making it the world's top oil region.

Venezuela is the third-largest foreign supplier of crude oil and refined petroleum products to the United States.

Venezuelan President Hugo Chavez has repeatedly threatened to cut supplies to U.S. markets, although these threats have failed to materialize.

Russia has said previously that exploration of the Junin 6 oil field could require $30 billion in investment, while PDVSA has said the field has the potential to produce 200,000 barrels per day.

Russian companies in the project include Rosneft (ROSN.MM), Gazprom (GAZP.MM), LUKOIL (LKOH.MM), TNK-BP TNBPI.RTS and Surgutneftegaz (SNGS.MM), which together hold 40 percent. PDVSA has the remaining 60 percent.

(Writing by Dmitry Zhdannikov)