Eni Doubles Down on Venezuela with New Oil Deal
Italian oil company Eni has signed a new deal with Venezuelan state-owned oil group PDVSA to develop the giant Junin 5 heavy oil project in the Orinoco Belt.
The agreement, announced on Wednesday, comes as Washington and Caracas have reopened Venezuela's oil sector to international investment. According to analysts, Eni's decision to remain in the country despite political upheaval and U.S. sanctions has improved its chances of recovering more than $2.3 billion owed by Venezuela.
The new deal converts Eni's existing stake in Junin 5 to a 25-year production-sharing agreement with Eni acting as the field operator, with plans to invest about $1.5 billion annually. Output is expected to reach 400,000 barrels per day (bpd) by 2030, up from its current 12,000 bpd.