China National Petroleum Corporation (CNPC) and Venezuela’s PDVSA (Petróleos de Venezuela SA) will invest about $14 billion to develop the Junin 10 block in the Orinoco extra heavy oil belt in Venezuela, according to a tweet sent out by Rafael Ramirez, the Venezuelan petroleum minister.
Con CNPC acordamos el desarrollo de un nuevo proyecto en el bloque Junin 10 de la Faja para producir 220 MBD con una inversion de 14 mil MM$— Rafael Ramirez (@RRamirezPDVSA) September 18, 2013
The new project is targeted to produce an estimated 220,000 barrels per day.
In 2010, PDVSA said that it would develop the block with its own efforts after failing to reach a satisfactory agreement Statoil and Total. That process of searching for a partner had started in 2007, with the quantification and certification of reserves in the block. At that time, PDVSA said that its business plan for Junin Block 10 was designed to achieve a production of 300,000 barrels of extra heavy oil daily, as well as building an upgrader that would transform the 8.5-degree API crude to upgraded crude of 35.7 degrees API.
In June 2012, Petróleos de Venezuela, SA (PDVSA) began drilling the first well in the Junin 10 block in cluster JA-16.