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Italy's Eni and Venezuela's PDVSA sign deal to develop Orinoco oil field

Italy's Eni and Venezuela's PDVSA sign deal to develop Orinoco oil field

Italian energy company Eni SpA and Venezuela's state-run oil company signed an agreement Friday to develop oil fields in the South American nation's petroleum-rich Orinoco region.
The Italian oil giant announced that Eni and Petroleos de Venezuela will work to quantify petroleum reserves in the region's Junin Block 5 field _ which is believed to hold more than 2.5 billion barrels of heavy crude _ before establishing a joint development project.
The Rome-based company plans to invest between US$10 billion (euro6.6 billion) and US$20 billion (euro13.2 billion) in the project starting next year, Eni CEO Paolo Scaroni said.
The Junin Block 5 field is expected to reach early production levels of about 30,000 barrels per day and long-term production of 300,000 barrels per day, according to a statement released by Eni.
PDVSA would have a 60 percent stake in the project, while Eni would control the remaining 40 percent.
Eni already owns a 26 percent stake in a joint venture with PDVSA in Venezuela's offshore Corocoro oil field, as well as a 19.5 percent stake in a joint venture in the Punta Sur field.
PDVSA is forging alliances with foreign oil companies such as Eni, France's Total, Britain's BP PLC and Norway's StatoilHydro ASA, which can provide the investment and technology needed to transform Orinoco's heavy, tar-like crude into lighter, more marketable oil.


Updated : 2021-05-10 08:00 GMT+08:00