Petróleos de Venezuela, SA (PDVSA) and the Italian company ENI signed a financing agreement of $ 2 billion to build a crude upgrader in the Junin Block 5 of the Orinoco Oil Belt and a power plant in Guiria, Sucre state, which will generate 500 megawatts.

The People’s Minister for Energy and Petroleum and PDVSA President Rafael Ramirez released the information in a news conference held jointly with representatives of the company led by ENI Chief Executive Paolo Scaroni, in the Simón Bolivar MENPET PDVSA complex.

Ramirez explained that Eni , a partner with PDVSA in joint ventures Petrojunín and Petrobicentenario with a 40% share capital operating in the Junin Block 5 of the Orinoco Oil Belt, has been working on various projects in oil and gas. He also noted that between Venezuela and Italy there is a cooperation effort since 2005 that serves as a stimulus and reference to these agreements.

Regarding financing, Ramirez said that ENI will provide 2 billion dollars, according to the agreement between the parties. From this amount, one thousand 500 million will go towards the construction of a crude upgrader for Petrobicentetario joint venture, located in the Petrochemical Industrial Complex José Antonio Anzoátegui, north of Anzoátegui state, which will process crude from the Orinoco Oil Belt, and will have an integrated refining and production. This improvement will be the first in the country that specialize in products for the European market.

the Minister of Energy and Petroleum said that the remaining $ 500 million financing agreement will be invested in building a power plant in Guiria, located in Sucre state, which will support the offshore gas development. The plant will have a capacity of 500 megawatts.

The investments support the implementation of Oil Sowing Plan.
The People’s Minister for Energy and Petroleum president said that ENI and PDVSA maintain high-level consultation mechanisms for the development of joint projects, which require investments totaling more than 19 billion dollars.

The Oil Sowing Plan progresses and the main company in Venezuela is consolidated with the confidence of international investors, in fact, PDVSA and the Japan Bank for International Cooperation (JBIC, for short) recently agreed funding 1,500 million dollars for expansion projects at refineries El Palito and Puerto La Cruz to which they will adapt its infrastructure to process heavy crude from the Oil Belt.

Ramirez also explained that ENI will make a disbursement for one billion dollars, so the total amount of resources in these projects amounts to 2 billion 500 million dollars. This amount is part of the $ 7 billion to bring the Italian company at a rate of one billion per year over the next seven years.

Moreover, Ramirez remembered that PDVSA and China National Petroleum Corporation (CNPC) materialize this year a loan of 4 billion dollars for the development of joint ventures that hold together. It also expects revenue of 650 million dollars by the BNDES for the shipyard in Sucre state, with the support of Brazil, which correspond part of 80 billion dollars to comply with the plan of development of our hydrocarbon reserves.

The Minister noted that these development projects are part of the Oil Sowing Plan "the business plan of our company comes under the concept of full oil sovereignty, the restoration of legal and fiscal framework, and strategic vision to diversify markets and the presence of companies in the country.”

Meanwhile, chief executive of ENI, Paolo Scaroni, welcomed the agreements signed with PDVSA and reaffirmed its confidence with Venezuela: "To give an idea of our commitments and our confidence in the Bolivarian Republic of Venezuela and in PDVSA, our company will invest $ 7 billion over the next 7 years, "he said.