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13/5/2010
PETRONAS SIGNS AGREEMENT TO DEVELOP INTEGRATED OIL PROJECT IN VENEZUELA
PETRONAS, together with partners Repsol YPF, ONGC Videsh Limited, Indian Oil Corporation Limited and Oil India Limited, has signed a joint venture agreement with Petroleos De Venezuela S.A. (PDVSA) for the development and production of hydrocarbons from the Carabobo Project in the Orinoco Region of Venezuela.
The consortium of PETRONAS (11%), ONGC Videsh (11%), Repsol (11%), Indian Oil Corporation (3.5%) and Oil India (3.5%) had on 10 February 2010 been selected by the Government of Venezuela for a 40% ownership interest in a joint venture company which will develop the Carabobo 1 Norte and Carabobo 1 Centro blocks located in the Orinoco Heavy Oil Belt. The Corporación Venezolana del Petróleo (CVP), a subsidiary of PDVSA, Venezuela's state oil company, will hold the remaining 60% equity interest. PETRONAS’ interest in the joint venture company will be held through its wholly-owned subsidiary PC Venezuela Limited.
The signing of the joint venture agreement took place in Caracas on 12 May in a ceremony attended by the President of Venezuela His Excellency Hugo Chavez Frias.
The award of the project to the joint venture company followed an extensive international selection process conducted by Venezuela’s Ministry of Energy and Petroleum from late 2008 through 2009.
Under the terms of the agreement, the joint venture company will build heavy oil production facilities, upgrading facilities and associated infrastructure. The upstream facilities are expected to produce around 400,000 barrels per day of extra-heavy oil, of which about 200,000 barrels per day will be upgraded into light crude oil in a facility to be located in the Soledad area, Anzoátegui State. The company has a license term of 25 years with the potential for a further 15-year extension.
For PETRONAS, the award marks not only its first contract in Venezuela but signifies its entry into a major development project in South America.
Apart from Venezuela, PETRONAS has existing interest in two major high-pressure gas transmission pipelines, Transportadora de Gas del Norte S.A. and Transportadora de Gas del Mercosur S.A. in Argentina.
Issued by
Corporate Communications Department Group Corporate Affairs PETRONAS 13 May 2010
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