Uchenna Izundu
International Editor
LONDON, Mar. 4 -- Eni SPA will develop Junin Block 5 in Venezuela's Orinoco oil belt under a strategic agreement with Venezuela's energy ministry and Petroleos de Venezuela SA.
The companies will form a joint venture to assess reserves and draw up a development program to initially produce 30,000 b/d and reach a long term production plateau of 300,000 b/d. The 670 sq km block is in the state of Anzoátegui, 550 km southeast of Caracas, with a resource estimated at over 2.5 billion boe.
Eni will make available to the venture proprietary slurry technology to convert heavy oils, bitumens, and asphaltenes into high-quality light products. It says the technology eliminates production of liquid and solid refinery residues.
PDVSA will have a 60% stake in the joint venture and Eni, 40%.
In February, ENI reached an agreement with Venezuelan government to settle a dispute over Dacion oil field in the Oficina trend in the eastern part of the country (OGJ, Nov. 19, 2007, p. 22). ENI had operated the field under a service contract that PDVSA terminated in April 2006.
Under the agreement, ENI will receive a cash settlement that it described as "in line with the net book value of the asset."
Also in Venezuela, ENI holds interests with PDVSA in two licenses in the Gulf of Paria and one in the Gulf of Venezuela.
Contact Uchenna Izundu at [email protected].
