September 30, 2005
Petrobras has invested U.S$ 1.5 billion in Venezuela

(El Universal) - "The four blocks comprising the gas exploitation project Mariscal Sucre are to be drilled under joint ventures.

The presidents of state-run oil corporations Petróleos de Venezuela (PDVSA) and Brazilian Petrobras initiated five agreements in the framework of the first summit of heads of state of the South American Community of Nations held in Brasilia.

According to a press release issued by Petrobras, the board of directors of the Brazilian firm approved the construction of an announced joint refinery in Pernambuco, north Brazil; drilling of the four blocks of gas comprising the Mariscal Sucre project; assessment of reserves in one of the blocks in the Orinoco Oil Belt; certification of other five blocks, and migration of the four operational agreements of Petrobras in Venezuela to joint ventures (...)

These four blocks reserves are estimated at 11 TCF of gas. Investment necessary to complete this project is calculated at USD 2.2 billion (...)

Regarding the Orinoco Oil Belt, Petrobras expects to assess and certify reserves in Carabobo I field. Subsequently, the Brazilian oil firm may acquire a 49 percent stake in a joint venture with PDVSA for prospection purposes. Potential output in this field amounts to 150,000 bpd of extra-heavy crude oil that could feed the Pernambuco refinery following upgrade.

Petrobras has also plans to enter into an agreement with PDVSA for quantification and certification of blocks Lido, Limón, Nieblas, Adas and La Paz in Venezuela. Potential output in these blocks is 437 million barrels of crude oil and 1.4 TCF of gas. Operational agreements Mata, Acema, La Concepción and Oritupano-Leona are to be migrated to joint ventures (...)".