• 3 minutes "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 9 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 6 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 9 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 7 days Energy Armageddon
  • 19 hours "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 3 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 3 days "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 19 hours Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 3 days "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 8 hours Is Europe heading for winter of discontent with extensive gas shortages?
  • 3 days The Federal Reserve and Money...Aspects which are not widely known
  • 4 days Goldman Betting on Cryptocurrencies
  • 7 days Сryptocurrency predictions
  • 12 days Putin and Xi Bet on the Global South
America's 'Maximum Pressure' Policy On Venezuela Has Failed

America's 'Maximum Pressure' Policy On Venezuela Has Failed

Washington’s unwavering faith in strict…

How Hezbollah Is Sparking Instability In Latin America

How Hezbollah Is Sparking Instability In Latin America

Hezbollah has established a notable…

Southern Pulse

Southern Pulse

More Info

Premium Content

Venezuela Encourages Orinoco Oil Belt Investment

As Venezuela's oil production continues to decline, the Chavez administration has focused on courting international investment to increase production in the Orinoco Belt. Located in the southern portion of the eastern Orinoco River Basin, Venezuela’s non-conventional oil deposits of approximately 1,200 billion barrels are found primarily in the Orinoco oil sands, an expensive and difficult environment for oil extraction.

According to the Chavez administration and some independent assessments, unproven reserves may surpass the amount of worldwide reserves of conventional oil. With the price of oil predicted to remain high, investment in the Orinoco oil sands has become more attractive to international interests. 

Over the last few months, the Venezuelan government and state-owned oil company, Petroleos de Venezuela, S.A. (PDVSA), has accelerated the process of facilitating private-sector investment to develop the Orinoco Belt.

Beginning in February 2010, Venezuela distributed by tender one oil block to a consortium led by Chevron and one oil block to Spanish company Repsol. Malaysia’s Petronas and India’s ONGC also demonstrated significant interest.

On 1 April, Russian Prime Minister Vladimir Putin visited Caracas for the first time and signed an memorandum for the creation of a joint Venezuelan-Russian business venture to be called PetroMiranda, which will assist with oil exploration and drilling in the Orinoco Belt, specifically in the Ayacucho 2, Ayacucho 3 and Junin 3 blocks. The Russian government has also signed an agreement to pay an entrance fee of US$1 billion for exploration of the Junin 6 field, of which US$600 million has already been deposited.

Not two weeks later, on 13 April, the Venezuelan Minister of Energy and Petroleum announced that investments in the Orinoco Belt will total US$120 billion over the next seven years, adding that the Orinoco Belt alone is expected to produce close to 3 million barrels a day by 2017.

Venezuela and China agreed on 19 April to form a joint venture to explore the extra-heavy crude in the Junin 4 block of the Orinoco Belt - a project that could require as much as US$16.3 million to get started. According to sources, PDVSA will own 60% of the joint venture, and China’s CNPC will own 40%.  The company is expected to initially produce 50,000 barrels of oil per day by 2012 and 400,000 barrels per day by 2016, and will process the heavy crude for export. In addition, CNPC will pay US$9 million to Venezuela as a bonus for Orinoco Belt exploration rights.

Brazilian construction company Odelbrecht was awarded a tender to increase oil production at oil fields in Zulia in early May. And Chevron announced - just before signing an Orinoco Belt exploration agreement - that it will begin exporting gas from Colombia to Venezuela, presumably because Venezuela's natural gas output is not high enough to meet national demand.

By Southern Pulse


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News