Carabobo oil field JVs established in Venezuela

CARACAS, April 15 (BestGrowthStock) – Lawmakers on Thursday
established joint ventures between Venezuela’s PDVSA state oil
company and two consortia of foreign companies to develop the
Carabobo fields in the South American nation’s heavy crude

The Carabobo auction in February awarded the largest oil
investment of President Hugo Chavez’s 11-year rule, drawing
tens of billions of dollars of much-needed foreign finance to
the Orinoco Belt just three years after the leftist leader
nationalized operations there.

The first joint venture established by the national
assembly gives PDVSA a 60 percent share of the project, with 40
percent divided between Repsol (REP.MC: ), Indoil and Petronas

The second joint venture is also led by PDVSA with 60
percent of the shares, with Chevron (CVX.N: ) splitting the
remaining 40 percent with Japan’s Inpex (1605.T: ), Mitsibushi
and Venezuela’s Suelopetrol (SPTb.CR: ).

The auction consisted of three projects with similar
surface areas containing a total of 127.9 billion barrels of
oil in place. One project was not awarded.

The government believes a total of 25.6 billion barrels are
recoverable, based on a recovery rate of 20 percent.

The projects are each slated to produce 400,000 barrels per
day (bpd). They each include the construction of a heavy crude
upgrader that can turn 200,000 bpd of tar-like Orinoco oil into
lighter and more valuable synthetic crude.

The remaining 200,000 bpd of Orinoco oil will be blended
with lighter oil to yield an intermediate grade. The projects
are due to begin production between 2012 and 2013.
(For a factbox on the Carabobo projects please click on:

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(Reporting by Frank Jack Daniel; Editing by Michael Urquhart)

Carabobo oil field JVs established in Venezuela