Eni Secures Key Role in Venezuela's Oil Revival with Junin 5 Deal
Italian oil company Eni has secured a key role in the revival of Venezuela's oil industry after signing an agreement to develop the Junin 5 heavy oil project with state-owned PDVSA. The deal, worth $1.5 billion annually, will provide opportunities for value creation and help recover outstanding receivables, including Eni's direct debt of $2.3 billion.
The project, which currently produces 12,000 barrels per day (bpd), is expected to reach 400,000 bpd by 2030. Eni Chief Executive Claudio Descalzi said work would start immediately at Junin 5, with the first well scheduled for drilling tomorrow.
Eni's decision to remain in Venezuela despite economic collapse and US sanctions has begun to yield results. The company produces about 64,000 boepd in the country and could eventually raise that to 1 million boepd.