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CARACAS
Petroleumworld.com, Sept 23, 2009

French oil giant Total on Tuesday voiced, it will invest $25 billion to develop the block 10 of the Junin area in the heavy oil Orinoco region in partnership with venezuela's state oil company PDVSA, according to a press release by the company.

PDVSA said in a statement on Tuesday that Total's investment in the Junin 10 field included the construction of an oil refinery or upgrader to turn the extra heavy crude into exportable oil and did not give a time frame or production estimate for the project with Total.

Oil Minister Rafael Ramirez said that over the next 10 years Venezuela would produce an extra 3.05 million barrels per day. Venezuelan output is currently disputed, but the government says it produces around 3 million bpd.

"It's the new stage, we estimate 10 years of permanent work, investment, investment, investment, work, work and more work," Ramirez told reporters.

Ramirez also said he would meet next week with companies interested in bidding for the Carabobo oil blocks in the Orinoco belt.

Ramirez said they are looking at the economics of the projects and the makeup of consortiums.

"The companies are ready with their consortiums and what we are waiting for is to finalise some agreements, especially with regards to the economic aspects," he said.

Companies interested include BP, Chevron, China's CNPC, Italian ENI and Portugal's Galp Energia .

The Carabobo Project aims to build three upgraders to turn the Orinoco belt's heavy oil crude of 8 grade API, into oil for exports of 32 grade API, and produce around 200,000 barrels per day, with the initial investment seen between $10 billion and $20 billion per area.

Ramirez said that in the Junin fields, the medium-term goal is to produce 1.85 million bpd and 1.2 million bpd from the Carabobo fields, it would raise the medium-term goal for the two Orinoco areas to 3.05 million, he said.

Total in Venezuela:

Has Interests of 69.5% in the producing Yucal Placer gas project and 49% in the offshore Plataforma Deltana Block 4, which is being explored for gas. Total’s equity production in 2006: 96,000 barrels of oil equivalent per day. Sustainable development programmes:

- Micro-credit and health, cultural, education and biodiversity programmes.

- Plans to install solar panels to provide electricity to 2,000 traditional Warao Indian dwellings in the Orinoco Delta.

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Total to invest $25 bln in Junin area of Venezuela's Orinoco belt