Eni Reactivates 'Supergiant' Venezuelan Oilfield
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The "supergiant" Junín-5 has restarted operations following the execution of the new license between Eni SpA and Venezuela, under which the heavy oil field is planned to increase production to 200,000 barrels per day (bpd) by 2028.
The redevelopment plan will restore abandoned wells and drill new ones. It will leverage existing infrastructure to fast-track execution, according to Eni.
Located in the onshore Orinoco Belt, Junín-5 holds 35 billion barrels of certified oil in place, according to Eni.
"The development of the field is a cornerstone of Eni's strategy to expand its upstream presence in Venezuela and will make it possible to enhance the substantial potential of one of the country's most significant oil-producing areas under the new contractual framework", Eni said in a press release.
Eni recently secured a 25-year agreement with state-owned Petróleos de Venezuela SA (PdVSA) to redevelop the field. The new Contrato de Participación Productiva de Hidrocarburos (CPPH), under the post-Maduro Organic Hydrocarbons Law, has replaced the operating model of the Petrojunín joint venture. Under the old model, Eni owned 40 percent in Junín-5 while PdVSA held 60 percent.
"The CPPH, which has a duration of 25 years with the possibility of extension, grants Eni the role of exclusive operator of the Junín-5 area, with full responsibility for the technical, financial and commercial management of the project", Eni said September 2.
At the time, Eni said Junín-5 was producing about 12,000 bpd.
Advertisement - Scroll to continue"This agreement represents a new pillar for the revival of the country's oil and gas sector, at a historic time when energy security, based on abundant resources and diversified supply routes, is vital to global stability", Eni chief executive Claudio Descalzi said.
Earlier this year Eni's 50:50 Venezuelan joint venture with Spain's Repsol SA signed an agreement to relaunch production at the largest offshore gas field discovered in Latin America, as announced by Eni April 28. The Perla field in the Gulf of Venezuela is under the joint venture Cardón IV.
Perla, which represents about 35 percent of Venezuela's gas demand, accounted for most of Eni's production of 64,000 barrels of oil equivalent a day in the country last year, according to Eni.
Separately Repsol also secured new agreements with Venezuela, including for the potential development of a new area southeast of Lake Maracaibo and near Repsol's existing portfolio in the South American country.
"The Horcón area is located between the Barúa and Motatán fields, which are already part of Repsol's portfolio of assets in Venezuela, together with the oil-producing fields of Petroquiriquire and Petrocarabobo, and the Cardón IV gas asset", Repsol said June 17.
"Through this agreement, the parties also expressed their intention to advance the analysis of offshore gas opportunities, with the aim of deepening studies and data on gas reservoirs in the Venezuelan offshore".
On April 16 Repsol announced an agreement with the government and PdVSA under which Repsol would grow its Venezuelan gross production by 50 percent within 12 months and triple it over the next three years.
"Repsol's gross production of oil in Venezuela currently amounts to around 45,000 barrels per day, mainly in Petroquiriquire", Repsol said at the time.
Repsol would reassume operational control of the Petroquiriquire field, where it owns 40 percent and PdVSA holds 60 percent, according to the agreement.
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Figures reflect the source report and its stated period. This article is for information and is not investment advice.
