TNK-BP / PDVSA JV In Venezuela Reaches Oil Production Target Of 130,000 Barrels Per Day

abarrelfullabarrelfull wrote on 13 Jul 2012 06:07
Tags: pdvsa s-america tnk-bp upstream venezuela

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TNK-BP announces that PetroMonagas, a joint venture between TNK-BP (16.7%) and Venezuelan state company PDVSA (83.3%), has increased its production of viscous oil by 11% since the start of the year to the target level of 130,000 barrels per day.

The Company is consistently growing its production volumes in line with the approved long-term development strategy for the asset. It plans to produce 145,000 barrels per day by as early as 2013. In addition, a project team will be appointed this year to study opportunities for boosting production at PetroMonagas’s assets to 200,000 barrels per day through extensive programmes to expand the capacity of the central processing facility and heavy oil treatment unit (upgrader).

The 185 sq km block in which PetroMonagas operates is in the eastern part of the resource-rich Faja heavy oil belt, located north of the Orinoco River. From 2012 to the expiry of the licence in March 2033, the company could produce in excess of 1 billion barrels of crude.

“In Venezuela, TNK-BP is gaining invaluable experience in producing highly viscous oil. We will be able to adapt these unique technologies for effective use in Russia. We’ve already achieved record results: since the start of the year we’ve achieved 11% of the planned 20% increased production we intend to reach in 2013”, said Boris Zilbermints, Senior Vice President, International Projects.

Information for editors:

The PetroMonagas JV is an integrated project including production of high-viscosity heavy oil and processing of it into lighter synthetic crude oil for export (high-viscosity 8.1 O API gravity oil is refined into synthetic 16 O API gravity synthetic oil)

TNK-BP is Russia’s third largest oil company and is owned by BP and the AAR consortium (Alfa Group/Access Industries/Renova) on a parity basis. Additionally, TNK-BP owns approximately 50% of the Russian oil and gas company Slavneft. TNK-BP’s share in Russia’s oil production (including its share in Slavneft) is about 16%. The Company’s total proved SEC LOF reserves were 8.794 billion BOE as of December 31, 2010.

In October 2010, TNK-BP ad BP announced an agreement under which TNK-BP would acquire BP’s production, pipeline and power generation assets in Vietnam and Venezuela at a total cost of $1.8 bn. The two companies closed the Venezuelan asset deal in June 2011 and officially received an investment licence to operate the 06.1 block in Vietnam in October 2011. In Venezuela, TNK-BP acquired BP’s 16.7% equity in PetroMonagas SA, which produces high-viscosity oil, a 40% share in Petroperija SA, the operator of the DZO field, and a 26.7% share in in Boquerón SA. The work on these assets is carried out via joint ventures with PDVSA and their aggregate production in 2011 was around 25,000 barrels of oil equivalent per day.

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