Shake on it: Hugo Chavez and Paolo Scaroni
Eni strikes a deal with PDVSA
Italy’s Eni has sealed a deal with Venezuelan state-run giant PDVSA to develop Junin Block 5 - which could hold more than 2.5 billion barrels of oil equivalent - in the Orinoco heavy oil belt.
The area covers around 670 square kilometres with a potential resource of more than 2.5 billion boe, according to preliminary estimates indicated by several wells, Eni said in a statement on Friday.
The Orinoco belt is the world’s largest deposit of heavy oil with estimated oil in place of 1300 trillion barrels.
The project will be operated by a PDVSA-led joint venture in which Eni will hold a 40% stake.
The deal is still subject to the successful completion of joint studies aimed at confirming the block's reserves. The joint venture aims to achieve early production of 30,000 barrels per day and a long-term production plateau of 300,000 barrels per day.
Eni boss Paolo Scaroni signed the deal, as did Venezuelan President Hugo Chavez and Oil Minister Rafael Ramirez.