April 2, 2010 / 8:05 PM / 7 years ago

FACTBOX-Venezuela development plan for Orinoco oil belt

 April 2 (Reuters) - Russian companies and Venezuela will invest between $60 million and $80 million this year in the Junin 6 block in Venezuela's vast Orinoco heavy crude belt, a senior Russian oil executive said on Friday. [ID:nN02137497]
 PDVSA and a Russian consortium, which includes state giant Rosneft (ROSN.MM) and private major LUKOIL (LKOH.MM), agreed in February to set up the project in the belt's Junin 6 field.
 On Wednesday, Caracas said it would begin producing 50,000 barrels a day by the end of this year, and that the Russian companies would pay Venezuela a first tranche of $600 million on Friday -- out of an agreed total of $1 billion -- for the right to take part. [ID:nN31225561]
 It is part of a massive plan to develop the Orinoco oil belt -- considered one of the largest in the world -- that is slated to add 2.1 million barrels per day of new production.
 The PDVSA-run projects are mostly set to begin producing tar-like Orinoco crude by 2013, with a total investment of some $80 billion. Upgraders to turn that crude into lighter synthetic oil will be ready several years later.
 Venezuela will receive a combined total of almost $6 billion in bonuses and financing from the partner companies.
 For a graphic of the Carabobo projects please click on link.reuters.com/vuk39h
 JUNIN BLOCK 2:
 * PDVSA 60 pct, Petrovietnam 40 pct.
 * 200,000 barrels per day heavy oil output by 2011, includes a heavy crude upgrader with unspecified start date.
 * Petrovietnam paid a bonus of between $500 million and $600 million.
 JUNIN BLOCK 4:
 * PDVSA 60 pct, China's CNPC 40 pct.
 * 400,000 bpd production capacity.
 * No start date, investment or bonus details available.
 JUNIN BLOCK 5:
 * PDVSA 60 pct, Italy's Eni (ENI.MI) 40 pct.
 * 240,000 bpd capacity, 75,000 bpd early output in 2013.
 * Includes refinery to produce finished oil products.
 * Eni paid $646 million bonus, total investments of $18.7 billion.
 JUNIN BLOCK 6:
 * PDVSA 60 pct, remainder distributed among Russian firms Rosneft (ROSN.MM), Gazprom (GAZP.MM), Lukoil (LKOH.MM), TNK-BP TNBPI.RTS and Surgutneftegaz (SNGS.MM)
 * Production of 450,000 bpd.
 * Investments to exceed $10 billion.
 * PDVSA to receive $1 billion signing bonus, including $600 million due to be paid during Putin's visit on Friday.
 CARABOBO PROJECT 1:
 * PDVSA 60 pct, Spain's Repsol (REP.MC) 11 pct, Malaysia's Petronas [PETR.UL] 11 pct, India's ONGC (ONGC.BO) 11 pct, Indian Oil Corporation 3.5 pct, Oil India Limited (OILI.BO) 3.5 pct.
 * Includes Carabobo Block 1 North and Block 1 Central.
 * Companies paid $1.05 billion bonus.
 * 400,000 bpd output by 2013, upgrader ready by 2017.
 CARABOBO PROJECT 3:
 * PDVSA 60 pct, U.S. Chevron (CVX.N) 34 pct, Venezuela's Suelopetrol 1 pct, Japan's Mitsubishi and Inpex (1605.T) split remaining 5 pct.
 * Includes Carabobo Block 2 South, Block 3, Block 5.
 * To produce 400,000 bpd by 2013, upgrader online by 2017.
 * Companies paid minimum bonus of $500 million, offered $1 billion in financing for PDVSA.
 BLOCKS WITHOUT PARTNERS
 JUNIN 1:
 * PDVSA is still in discussions with Belarus' state oil company for the 200,000 bpd block.
 JUNIN 10:
 * PDVSA rejected offer by Norway's Statoil (STL.OL) and France's Total (TOTF.PA) for the 200,000 bpd block.
 JUNIN 11:
 * PDVSA is still in discussions with a Japanese consortium for the 200,000 bpd block.
 CARABOBO PROJECT 2:
 * PDVSA did not receive bids during its Carabobo auction in February. Conditions are similar to Carabobo Project 1.
 Carabobo projects details at fajadelorinoco.com/index.html  (Reporting by Brian Ellsworth and Marianna Parraga; Writing by Daniel Wallis; Editing by Anthony Boadle)   

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