Petroleos de Venezuela SA expects to increase production at existing oil fields by 250,000 barrels a day in its joint ventures through 2015 for a total investment of $13 billion, a company official said.
State oil producer PDVSA and China National Petroleum Corp.
have secured a $4 billion loan from China Development Bank Corp.
that will finance 40 percent of the increased production target,
the official, who isn’t authorized to speak publicly, said today
in Caracas.
An increase in production at existing fields is
“imperative” for the company, he said.
PDVSA President and Oil Minister Rafael Ramirez told
partners such as Chevron Corp., Petroleo Brasileiro SA (PETR4) and Eni
SpA in February to boost declining output at existing fields or
risk contract revisions. PDVSA holds at least a 60 percent stake
in the more than 20 ventures that were created in 2006 after
President Hugo Chavez nationalized the industry.
The China Development Bank loan will be used to boost
output at the Petrosinovensa, Petrozumano and Petrosino
Venezolana ventures in eastern Venezuela, the official said.
Final details of the 10-year loan will be agreed upon by year-
end and will include a three-year grace period, he said.
Venezuela wants to increase production of lighter oil to
blend with heavier crude pumped from the Orinoco Belt where the
Caracas-based company expects to double output to 2 million
barrels a day in the next few years, Ramirez said on Oct. 6.
To contact the reporter on this story:
Corina Rodriguez Pons in Caracas at
crpons@bloomberg.net;
Daniel Cancel in Caracas at
dcancel@bloomberg.net.
To contact the editor responsible for this story:
Dale Crofts at dcrofts@bloomberg.net