VENEZUELA: Italy's state-oil company ENI signs $7 billion energy deal in Venezuela

Record ID: 344063

  • Title: VENEZUELA: Italy's state-oil company ENI signs $7 billion energy deal in Venezuela
  • Date: 16th July 2011
  • Summary: CARACAS, VENEZUELA (JULY 14, 2011) (REUTERS) ***CONTAISN FLASH PHOTOGRAPHY*** VARIOUS EXTERIORS OF VENEZUELA OIL COMPANY PDVSA VENEZUELAN ENERGY AND PETROLEUM MINISTER RAFAEL RAMIREZ AND ENI PRESIDENT PAOLO ESCARONI AUDIENCE WATCHING ESCARONI AND RAMIREZ SIGNING ACCORDS AUDIENCE APPLAUDING AS ESCARONI AND RAMIREZ SIGN AGREEMENTS (SOUNDBITE) (Spanish) RAFAEL RAMIREZ, VENEZUELA ENERGY AND PETROLEUM MINISTER, SAYING: "The agreement that we signed today and the terms have to do with the financing of 2 billion dollars to PDVSA (Venezuela state oil company). It is financing made up of 1500 billion dollars to stud the development of the first phase needed for early petroleum production and the basic engineering of our refinery that will have a 300,000 barrel a day capacity over there in Anzoategui state. At the same time, we have the financing of 500 billion to develop an electric plant in Guiria that will give all the electricity generation for the development of gas." ESCARONI LISTENING TO RAMIREZ TALK AUDIENCE MEMBER LISTENING (SOUNDBITE) (Spanish) PAOLO ESCARONI, ENI PRESIDENT, SAYING: "To give an idea of our commitment and the confidence we have in the Bolivarian Republic of Venezuelan and in PDVSA, ENI will invest 7 billion dollars over the next 7 years. One billion per year with the goal of arriving at a net production in the country of about 200,000 barrels a day of petroleum equivalent, which is the equivalent of an increase in production for Venezuela of almost half a million barrels of petroleum a day." JOURNALISTS RAMIREZ AND ESCARONI LEAVING
  • Embargoed: 31st July 2011 13:00
  • Keywords:
  • Location: Afghanistan, Venezuela, Bolivarian Republic of
  • City:
  • Country: Afghanistan Venezuela, Bolivarian Republic of
  • Topics: Business,International Relations,Politics,Energy
  • Reuters ID: LVA2ZCSFARUVHOUDDPJNLD0RB63O
  • Story Text: Italy's Eni signed an agreement on Thursday (July 14) to invest $7 billion in Venezuela's state oil company PDVSA to increase energy production in the South American country.
    The two companies will begin early production from their Junin 5 block next year and hope to reach 240,000 barrels per day by 2018, Venezuelan Energy Minister Rafael Ramirez said at a Caracas news conference.
    "The agreement that we signed today and the terms have to do with the financing of 2 billion dollars to PDSA (Venezuela state oil company). It is financing made up of 1500 billion dollars to stud the development of the first phase needed for early petroleum production and the basic engineering of our refinery that will have a 300,000 barrel a day capacity over there in Anzoategui state," he said.
    He added that the rest of the money will go towards developing an electric plant in the eastern part of the country.
    "At the same time, we have the financing of 500 billion to develop an electric plant in Guiria that will give all the electricity generation for the development of gas," he said.
    Escaroni said the Italian company expected to invest $7 billion in the South American OPEC member over the next seven years, including $2 billion for the Junin 5 block and energy generation.
    "To give an idea of our commitment and the confidence we have in the Bolivarian Republic of Venezuelan and in PDVSA, ENI will invest 7 billion dollars over the next 7 years. One billion per year with the goal of arriving at a net production in the country of about 200,000 barrels a day of petroleum equivalent, which is the equivalent of an increase in production for Venezuela of almost half a million barrels of petroleum a day," he said.
    Eni has a 40 percent stake and PDVSA a 60 percent stake in the Junin 5 project which is one of six areas in Venezuela's petroleum-rich Orinoco belt in Venezuela that is being developed for oil production.
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