Project Profile
Value: US$20 billion
Location: Orinoco River basin, Venezuela
Production: Produce 50,000 barrels of oil per day (2014)
Reserves: 10.96 billion barrels (revoverable)
Area: 447,850 square kilometres
Start-up Year: August 2012
The Junin 6 block, with an area of 447,850 square kilometres, holds 52.6 billion barrels of oil, while its recoverable reserves total 10.96 billion barrels. The block is located in the Orinoco River basin in Venezuela. Within the Junin-6 block, 14 wells have already been drilled. The project\'s total investment is estimated at US$20 billion. Work on the 25 year project is scheduled to begin later in 2012. The joint venture leading the project plans to produce 50,000 barrels of oil per day in 2014, and have a daily production of 450,000 barrels by 2017. The Junin-6 oil field will be developed by a consortium of five Russian oil companies: Gazprom Neft, Lukoil, Rosneft, Surgutneftegaz, and TNK-BP through OOO National Oil Consortium (NOC). In 2010, the board of directors of NOC selected Gazprom Neft to lead project coordination on the Russian side in the PetroMiranda joint venture (operator of the Junin-6 block). Lukoil is participating together with compatriots Rosneft, TNK-BP and Gazprom Neft in the National Oil Consortium that has a 40% stake in field operator PetroMiranda, with PDVSA holding the remaining 60%.
Over the past two years, all the necessary project preparatory work has been completed, the release said. An office of the JV was opened in Puerto La Cruz where there are now more than 200 employees. Further, five sites for drilling appraisal wells and geological exploration of the block have been built, with the first appraisal well having been drilled already. Infrastructure development also continues and the conceptual design of an upgrader, a unit needed to improve the quality of heavy oil from the Orinoco River belt, has been completed. In spring 2012, project shareholders agreed to start early production of oil at the field, putting the Junin-6 block into operation before the final investment decision, according to the release. The start-up of production was made possible by the completion of the drilling of the first horizontal production well in August 2012. Surgutneftegaz, decided in September 2012 to exit the consortium, set up by the Russian government to exploit the Orinoco asset, with its 20% stake set to be shared between the four remaining partners.
Operators:
PetroMiranda: Operator with 100% interest
National Oil Consortium – NOC (Joint venture of Rosneft and Gazprom Neft): 40% interest of PetroMiranda
PDVSA: 60% interest of PetroMiranda