Mitsubishi Corporation has entered into Joint Venture Agreement on 12th May on development of Orinoco extra-heavy crude oil produced in the Carabobo blocks situated along Orinoco River in Bolivarian Republic of Venezuela.
The proposed Joint Venture, established in late May, will consist of Japan Carabobo UK Ltd, a subsidiary of Japan Carabobo, Ltd., with a 5% interest, Chevron with a 34% interest and a Venezuelan company Suelopetrol with a 1% interest together with CVP, a subsidiary of PDVSA, the Venezuelan national oil company, with a 60% interest.
Japan Carabobo, Ltd was jointly established by Mitsubishi Corporation and INPEX CORPORATION on 22nd April, and Japan Oil, Gas and Metal National Corporation (JOGMEC) plans to provide equity capital finance, which makes Mitsubishi Corporation’s share in the company 25.45% while INPEX 25.5% and JOGMEC 49% respectively.
The joint venture company is expected to start various operations toward development for the Carabobo Project 3 (blocks C2 South, C3 North and C5, situated in the northeast Orinoco River) and aim to attain a peak production level of over 400,000 barrels of oil per day as blended oil of syncrude and heavy oil.
This project is the first extra-heavy oil development project in Venezuela in which Japanese companies participate, and it is expected to accumulate technical findings through the project. Mitsubishi Corporation is committed to the success of this project, which should help diversify energy sources and contribute to stable supplies of crude oil.