Venezuela okays joint ventures to develop the Orinoco Oil Belt

http://english.eluniversal.com/2010/05/10/en_eco_esp_venezuela-okays-join_10A3872775.shtml

The consortium including Chevron Carabobo Holdings (US), Japan Carabobo and Suelopetrol Internacional was authorized under a decree published in the Official Gazette

The Venezuelan Petroleum Corporation will own a 60 percent stake in the venture, while Chevron will hold 34 percent of the shares, Japan Carabobo (5 percent) and Suelopetrol (1 percent) (File photo)
Energy
The organization of a joint venture between Corporación Venezolana del Petróleo (CVP), Chevron Carabobo Holdings (US), Japan Carabobo and Suelopetrol Internacional -which will be attached to the Ministry of Energy and Petroleum- was authorized by the Venezuelan government.

Under decree 7,399, the CVP will own a 60 percent stake in the venture, with Chevron holding 34 percent of the shares; Japan Carabobo, 5 percent; and Suelopetrol, 1 percent.

The joint venture will aim at developing activities referred to in Article 9, Organic Law on Hydrocarbons, in the states of Anzoátegui and Monagas, particularly in blocks Carabobo 2 Sur, Carabobo 3 Norte, and Carabobo 5, at the Orinoco Oil Belt, comprising an area of 534.54 square kilometers.

The decree also authorized the establishment of a joint venture between CVP, Repsol Exploración (Spain), PC Venezuela, Petrocarabobo Ganga and Indoil Netherlands, which will also be attached to the Venezuelan Ministry of Energy and Petroleum.

The share capital of the company will be divided as follows: CVP (60 percent), Repsol (11 percent), PC Venezuela (11 percent), Petrocarabobo Ganga (11 percent) and Indoil (7 percent), ABN reported.

This company will carry out primary activities in the Carabobo 1 Centro block and the Carabobo 1 Norte block of the Orinoco Oil Belt, in an area of 382.86 square kilometers.

It is worth mentioning that last February, Venezuela awarded to these companies the contracts to participate in the development of the Carabobo 1 and 3 blocks of the Orinoco Oil Belt.

For the development of the Carabobo 1 block, the companies pledged to pay USD 1.05 billion, out of which USD 200 million will be paid with the incorporation of the joint venture. Besides, they will grant a USD 1.05 billion loan to the state-run oil company Petróleos de Venezuela (Pdvsa).

For the Carabobo 3 block, Chevron consortium will pay USD 500 million and will grant a USD 1 billion loan to Pdvsa.

According to figures of the state-oil run company, the Carabobo project has a potential to produce between 400,000 and 480,000 barrels of oil per day in each block and it will require a USD 30 billion investment.