On January 26 Petróleos de Venezuela (PDVSA) and Italy’s ENI signed a memorandum of understanding for the development of an integrated production project in the Junín 5 Block of the Orinoco Oil Belt.

The Executive President of ENI, Paolo Scaroni, and the President of the Venezuelan Oil Corporation (CVP) and Vice President of Exploration and Production of PDVSA, Eulogio del Pino, signed the deal.

The Joint Venture of the Junín 5 Block will develop primary activities. The objective is to reach a production of 240,000 barrels of 8.5 API extra heavy oil per day.

ENI will pay Venezuela an amount of $646 million for its participation.

The basic engineering of the project will start in 2010, while search and construction are expected to be initiated in 2012. Operations will start in 2017, with an estimated investment of 12 billion dollars.

PDVSA and ENI also signed a memorandum of understanding for the development of a thermoelectric plant in the Gran Mariscal de Ayacucho Industrial Complex, located in Güiria, Sucre state (northeast). The plant will have a capacity of 1000 MW.

Finally, a memorandum of understanding on technological cooperation was signed by PDVSA and ENI for the development of different technological projects.

Bolivarian News Agency, Embassy of the Bolivarian Republic of Venezuela in the U.S. Press and Communications Office / January 26, 2010