UPDATE 1-Russia's Rosneft negotiating $5 bln financing deal with PDVSA -source
(Adds details on deal, context)
By Alexandra Ulmer
MARACAIBO, Venezuela, June 17 (Reuters) - Venezuelan state oil company PDVSA and Rosneft are negotiating a financing deal under which the Russian oil major could lend its South American counterpart $5 billion, a source close to the negotiations said on Wednesday.
In return, the source said, Rosneft wants to increase participation in the Petromonagas joint venture, invest in and export gas instead of selling it at a major discount on the price-controlled local market, gain more control of operations and oil sales, and increase security at operations.
The potential $5 billion would be disbursed gradually, with some used to shore up Rosneft's joint ventures and some going to PDVSA itself.
PDVSA's president, Eulogio del Pino, was due in St. Petersburg this week to continue negotiations, according to the source, who said the talks were likely to continue for a while longer.
"Rosneft is going to push for this," the source said, asking not to be named because he was not authorized to speak on the matter.
PDVSA was not immediately available for comment.
Venezuela is chasing investment to meet ambitious oil production goals and to try to counter a biting economic crisis. Continuación...