Petronas, together with partners Repsol, ONGC Videsh, Indian Oil and Oil India, has signed a joint venture (JV) agreement with Petroleos De Venezuela for development and production of hydrocarbons from the Carabobo Project in the Orinoco region of Venezuela.

The consortium of Petronas (11%), ONGC Videsh (11%), Repsol (11%), Indian Oil (3.5%) and Oil India (3.5%) had been selected by the Government of Venezuela for a 40% ownership interest in a JV company, which will develop the Carabobo 1 Norte and Carabobo 1 Centro blocks located in the Orinoco heavy oil belt.

The Corporacion Venezolana del Petroleo (CVP), a subsidiary of PDVSA, Venezuela’s state oil company, will hold the remaining 60% equity interest. Petronas’ interest in the JV company will be held through its wholly-owned subsidiary PC Venezuela.

Under the terms of the agreement, the JV company will build heavy oil production facilities, upgrading facilities and associated infrastructure. The upstream facilities are expected to produce around 400,000 barrels per day of extra-heavy oil, of which about 200,000 barrels per day will be upgraded into light crude oil in a facility to be located in the Soledad area, Anzoategui state. The company has a license term of 25 years with the potential for a further 15-year extension.

Apart from Venezuela, Petronas has existing interest in two high-pressure gas transmission pipelines, Transportadora de Gas del Norte and Transportadora de Gas del Mercosur in Argentina.