Six new agreements that will strengthen bilateral cooperation were signed this Wednesday by the authorities of the Bolivarian Republic of Venezuela and of the Kingdom of Spain, among them those related to energy, thus opening a new stage in the strengthening of relations between both nations.

One of the agreements signed refers to the execution of joint studies between the state-owned company Petróleos de Venezuela, S.A. (PDVSA) and the Spanish oil company Repsol YPF at the Junín 7 Block in the Orinoco Oil Belt, where 34 billion barrels of oil have been certified, of which 6 billion barrels can be recovered based on a recovery rate of 20%. The goal is to produce 200 thousand barrels of oil per day, starting in 2012.

A letter of intention was also signed with Repsol for the creation of the mixed company Petroquiriquire, which at present produces 30 thousand barrels and is expected to reach 100 thousand barrels in the next few years.

In the area of electric power, an engineering, procurement and construction contract was signed for the Antonio José de Sucre thermal-electric energy plant in Cumaná, State of Sucre, to generate one thousand megawatts of energy using the gas from off shore developments, with an estimated investment of 2 billion dollars.

In this same area, both nations agreed to sell to PDVSA 100% of the Termobarrancas complex located in the State of Barinas, which after being nationalized, will be part of the assets of the National Electricity Corporation (Corporación Eléctrica Nacional - Corpoelec).

Hugo Chávez, President of the Bolivarian Republic of Venezuela, was pleased because both delegations “gave important steps in the bilateral relations, to strengthen links between Spain and Venezuela”.

With respect to energy he said: “We have a project for the whole Orinoco Oil Belt, because we will not repeat the development model of the 20th century: they took away all the oil and left Lake Maracaibo polluted and surrounded by misery”.

Miguel Angel Moratinos, Foreign Affairs Minister of Spain, highlighted the work done in Caracas, and said that during the meeting “we could identify areas of cooperation where the transfer of Spanish technology and the trust Venezuela has in the know-how of Spanish companies” could result in a beneficial Alliance for both countries.