Spanish energy group Repsol has approved a US$1.2bn investment in Petroquiriquire, its joint venture with Venezuela's state-owned oil and gas company PDVSA (60%, with 40% owned by Repsol), to boost oil production in the Latin American country.
Petroquiriquire operates three oil fields in the states of Zulia, Trujillo, and Monagas, with an average oil produciton of 41,600 bbl/d. Current production level stands at around 30,000 bbl/d and Repsol's investment is expected to help raise production to 60,000 bbl/d. In addition, the joint venture partners agreed to invest in five joint ventures that currently produce 170,000 bbl/d in the Orinoco oil belt. Two gas fields could be integrated, representing more than 600 mcf/d (17 mcm/d or 6.2 bcm/year) and whose production would be sold on the domestic market and exported. In addition, PDVSA and Repsol will create a new joint venture, Perforosven, to develop drilling projects.
PDVSA has also signed an agreement with Domegas for gas distribution in the greater Caracas area and in the center of the country. The deal is aimed at optimising gas distribution networks in the Zulia state, to recover around 50 mcf/d (1.4 mcm/d or 515 mcm/year) that could be exported. Around 16,000 new users will be connected in the Caracas area.