PDVSA, Eni Cut $2bn Financing Deal

Venezuelan state-owned oil company PDVSA and Italy’s Eni have signed a $2bn financing agreement as they look to develop the Junin 5 oil block in the country’s Orinoco belt. The Junin 5 block is run by enterprises, which are owned by PDVSA (60%) and ENI. (40%). The plan is to produce 75,000 barrels of oil per day starting in late 2013 and to increase that amount to 240,000 by 2018. The Italian oil company has agreed to finance up to $1.5bn in development costs to cover the early production phase. It will also make $500m in additional financing available to fund the building of a power station.