RIA Novosti reported that Russian state controlled oil giant Rosneft will invest USD 16 billion in the project to develop the Carabobo 2 bloc in the southern Orinoco extra heavy crude belt in Venezuela.

Mr Igor Sechin CEO of Rosneft said that company will implement the project jointly with Venezuela's state company PDVSA. Commercial oil production at the bloc is expected to hit 400,000 barrels per day. Rosneft is also one of several Russian oil companies that have formed a consortium to develop the Junin bloc 6 of the Orinoco belt in Venezuela.

Russia’s National Oil Consortium to develop the Junin bloc 6 comprises Gazprom Neft, Rosneft, TNK-BP, Surgutneftegas and LUKoil. Surgutneftegas has announced plans to sell its 20% stake in the project to Rosneft. The deal will make Rosneft the managing company of Junin 6.

Mr Sechin said that total investment in the Junin project will reach USD 20 billion over 40 years. The Russian oil major expected to produce the first batch of crude oil at the bloc.

The Junin 6 block's geological reserves include 52.6 billion barrels of oil while recoverable reserves amount to 10.96 billion barrels. The block area totals 447.85 square kilometers.

Source - RIA Novosti

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