Japanese agency to invest in Venezuela's Orinoco belt

Japan’s government-backed Japan Oil, Gas & Metals National Corp. (Jogmec) said it will invest up to ¥32 billion by yearend 2017 in an extra-heavy Orinoco crude oil project in Venezuela, in which two Japanese companies are involved.

Eric Watkins
OGJ Oil Diplomacy Editor

LOS ANGELES, Apr. 13 -- Japan’s government-backed Japan Oil, Gas & Metals National Corp. (Jogmec) said it will invest up to ¥32 billion by yearend 2017 in an extra-heavy Orinoco crude oil project in Venezuela, in which two Japanese companies are involved.

Jogmec said it decided to provide equity capital finance to a subsidiary of Inpex Corp. and Mitsubishi Corp., which is participating along with subsidiaries of Chevron Corp. and Suelopetrol CA in an extra-heavy oil development project on three blocks of the Venezuela’s Carabobo area.

The four firms jointly participated in the bidding for development of Carabobo projects held in January, and were selected to develop Project 3a—development, production, and upgrading in Carabobo Block 5, Block 2 South, and Block 3 North.

The consortium is now studying feasibility with a plan to form a joint venture with Venezuela's state-owned Petroleos de Venezuela SA to produce as much as 400,000 b/d of oil at the project.

Jogmec said it will invest the ¥32 billion once the joint venture is established.

PDVSA expects to take a 60% stake in the JV, while Chevron will own 34%. Mitsubishi and Inpex will jointly hold 5%, awhile Suelopetrol will have the remaining 1%.

Contact Eric Watkins at hippalus@yahoo.com.

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