OREANDA-NEWS. August 15, 2012. Venezuelan oil company Petroleos de Venezuela, S.A. (PDVSA) and US oil company Chevron signed on Wednesday 18 a term sheet for a USD 2 billion investment contract aimed at financing Petroboscan, a joint venture.

The funding to be provided by Chevron to Petroboscan will be long term (the last payment would be made in 2025), at a rate of LIBOR plus 4.5 percent without additional costs and will be aimed at carrying out works to maintain and boost current oil production of 115,000 barrels per day at Boscan field in Venezuela’s western state of Zulia in order to comply with the remediation plan required by the People’s Ministry of Petroleum and Mining.

The agreement includes preliminary funding accords to make payments of Petroboscan pending liabilities as well as the channeling of revenues from hydrocarbon sales to ensure future funding for the joint venture.

Petroboscan is a joint venture between the Venezuelan Petroleum Corporation (CVP, Corporacion Venezolana del Petroleo) and Chevron and was formed in 2006, as part of the migration process promoted by the People’s Ministry of Petroleum and Mining to transform into joint ventures the former operating service agreements that did not comply with the Hydrocarbons Law enacted in 2001.