The redevelopment plan will restore abandoned wells and drill new ones. It will leverage existing infrastructure to fasttrack 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. The oil giant 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,” the company said on September 2. At the time, Eni said Junín-5 was producing about 12,000 bpd. “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,” said Eni chief executive, Claudio Descalzi.
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.
