Yahoo Finance
Italy's Eni has signed a 25-yearcontractwith Venezuela's state oil company PDVSA that makes the Italian energy major the exclusive operator of the giant Junín-5 heavy-oil field in the Orinoco Belt.
The agreement gives Eni responsibility for the technical, financial and commercial management of Junín-5, which contains an estimated 35 billion barrels of certified oil in place but currently produces just 12,000 barrels per day.
The deal marks a significant change from the previous Petrojunín joint-venture structure, under which PDVSA held 60% and Eni 40%.
Venezuela's recently reformed hydrocarbons law allows foreign and domestic companies greater autonomy to operate fields, market production and receive proceeds from oil sales.
Energy Secretary Chris Wright's visit to Caracas and comes amid a broader revival of foreign investment in Venezuela's oil industry.
Chevron separately announced plans to invest $7 billion over five years and more than double its Venezuelan production to 600,000 bpd by 2031.
The company originally envisioned developing the field to 240,000 bpd, although that target—initially planned for 2018—wasnever achieved.
The Financial TimesreportedWednesday that Eni plans to invest around $1.5 billion annually as it ramps up the project.
Its other assets include the Perla offshore gas field with Repsol and a 26% stake in PetroSucre.
Oilprice Intelligencebrings you the signals before they become front-page news.
This is the same expert analysis read by veteran traders and political advisors.
Get it free, twice a week, and you'll always know why the market is moving before everyone else.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
Comments
Post a Comment