Venezuela and China start drilling of the Junin 4 Block

abarrelfullabarrelfull wrote on 05 Feb 2014 12:00

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Ratifying several energy bilateral cooperation commitments, Petroleos de Venezuela S.A. (PDVSA) and China National Petroleum Corporation (CNPC), started drilling works of the first evaluation well of the Junin 4 Block in the Orinoco Oil Belt, were approximately 36 thousand barrels of Oil Originally In Place (OOIP) are expected to be quantified and certified.

In the framework of the Ceremony of the execution of several agreements between China and Venezuela, that took place in Miraflores Palace and was attended by President Hugo Chavez, a via microwave contact was established to have PDVSA, CVP and CNPC representatives inform, from Santa Maria de Ipire in Guarico State, the schedule of works that started this Tuesday with the drilling of the first of 18 wells that will allow evaluating reserves to be quantified in the aforementioned block, and which will finish in 2007.

President Hugo Chavez indicated that, “the Magna Reserve Project is the largest project ever envisioned in Latin America and one of the most important projects worldwide”. Similarly, he informed that, “there is oil there, not only for Venezuela and Caribbean countries, but we can also supply China because all the oil needed is here. We are a reliable and safe supplier for the entire world”.

The President indicated that supply of Venezuelan oil to China has reached 154 thousand barrels, hence surpassing the estimated goal of 150 thousand barrels for the current year. It is important to highlight that daily energy consumption in China is 7 million oil barrels. “The commitment is to gradually increase oil supply to China. Our goal is to send 300 thousand barrels in 2007 and half a million barrels per day in 2008”, Chavez indicated.

China National Petroleum Corporation is one of the companies participating in the quantification of oil reserves in the Orinoco Oil Belt, where approximately 235 thousand million additional crude barrels will raise Venezuelan reserves to 316 thousand million barrels, the largest reserves for any country in the world.

From their location in the drilling facilities that will drill the well of the Junin 4 Block, workers guaranteed to the world that the quantification of reserves would be ready by 2007. It is estimated that there is a reserve of 316 thousand million oil barrels in this area, which is located only one thousand meters deep, thereby facilitating its extraction.

The purpose of the Orinoco Magna Reserve Project is to quantify and certify Venezuela’s hydrocarbon reserves in the Orinoco Oil Belt in order to update the OPEC quota, underpin negotiations with third parties and start new developments of its own.

The Junin area, Junin 4 Block of the Orinoco Oil Belt, is the largest source of liquid hydrocarbons reserves worldwide. It is estimated to comprise 1.3 billion crude barrels, both heavy and extra-heavy, out of which 20% could be extracted, which is equal to 235 thousand million barrels. It is located south of the Guarico, Anzoategui and Monagas States; it covers an approximate extension of 55,314 km2 and is divided into four areas called Boyaca, Junin, Ayacucho and Carabobo.

The Junin area, covering a total extension of 14,580 Km2, is divided into 10 blocks, of which number four is located in the Santa María de Ipire Municipality, Guarico State, and has an extension of 678 Km2. The well that will be drilled will have the nomenclature J4-05.

The ceremony that took place in the Miraflores Palace was an appropriate occasion to crystallize the execution of legal instruments and agreements of intent between the Bolivarian Republic of Venezuela and the Peoples Republic of China in the following areas: agreements regarding agriculture, establishment of new telecommunications systems, manufacturing of computers throughout the national territory, integrated services to develop telephone systems, a wireless broad band to interconnect all entities of the country, manufacturing of third-generation cell phone devices in Venezuela with integrated Internet and video, and creation of physical stock of industrial machinery, among others.

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