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- Total S.A.
- Petróleos de Venezuela S.A.
- Ministerio del Poder Popular para la Energía y Petróleo
- StatoilHydro ASA
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Financial Results | Privatization/Concession | Government/Regulations | Upstream - Production | Upstream - Exploration
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MeneameThe development of the Junín 10 block in Venezuela's Orinoco heavy crude belt will not include an upgrader, Christophe de Margerie, CEO of French oil major Total (NYSE: TOT), told journalists after speaking at the 24th World Gas Conference in Buenos Aires.
Venezuela's state oil company PDVSA has said that both Total and Norway's StatoilHydro (NYSE: STO) will develop the block, but details on a formal agreement for the block have yet to be released.
"It is no secret that for the last few years Total has worked on the development of another area in the Orinoco, Junín 10," de Margerie said.
"For the moment, it is only a production project. No additional installations are being developed," he added. "Based on the prices we've seen recently, this will be part of our long-term strategy to have access to potential and very interesting heavy oil reserves in Venezuela."
Crude produced from the block can be mixed with lighter crude and sold without having to be upgraded, according to the CEO.
When asked about the Carabobo tender for seven new heavy crude blocks, de Margerie said that Total was still waiting for more information on the round.
"Carabobo is one good prospect in the Orinoco belt," he said. "The bidding has been postponed, and this is a decision of the Venezuelan state. We don't know when they'll open up the bidding."
Venezuela's oil and energy ministry (Menpet) and PDVSA in late September announced a new timeframe for the tender.
Complete terms will be released on November 12 and bids will be due on January 28, according to the latest public information from PDVSA.
Terms will be similar to ones used in PDVSA's recent deal with Russia to develop several blocks in the Orinoco. Those terms, however, have not been widely publicized.
Investment in the seven Carabobo blocks is expected to reach US$30bn to produce an additional 1.2Mb/d, PDVSA said.
Besides creating JVs to operate the seven new blocks, the round calls for the construction of several heavy crude upgraders with capacities of around 200,000b/d.
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