A Venezuelan oil block being studied by Petroleos de Venezuela SA, or PdVSA, and Spain's Repsol YPF SA has up to 6 billion barrels of recoverable reserves, and production at the site could begin by 2012, Venezuelan officials said Wednesday.
The so-called Junin 7 block, Chavez said, will be developed by a joint Venezuelan-Spanish company, and it will produce up to 200,000 barrels of crude a day. It will require upgrading facilities to improve the tar-like crude, he added.
PdVSA and Repsol agreed to start working together on Junin 7, located in the Orinoco oil belt in eastern Venezuela, in 2005. The Orinoco area is considered to be one of the main reserves of heavy and extra heavy crude in the world.
Venezuelan Oil Minister Rafael Ramirez said the studies on Junin 7 could be finished this year. Once the joint-venture company is approved sometime next year, production could begin two years after that, he said.
Brewskie comment: Great, Hugo, your country found more oil. Now why don't your let your oil companies fill their vital posts with skilled oil personnel, rather than your sycophantic thugs. Oil is the lifeblood of your economy, you don't have a supply problem, or any difficulty finding oil. Have you figured out why production is around 2 mbpd, down from 3.5 mbpd before you entered power?