Eni, PDVSA sign Venezuela MoU

Eni has signed a Memorandum of Understanding (MoU) with Petroleos de Venezuela, S.A. (PDVSA) for the exploration and development of two offshore areas in Venezuela.

Offshore staff

MILAN, Italy -- Eni has signed a Memorandum of Understanding (MoU) with Petroleos de Venezuela, S.A. (PDVSA) for the exploration and development of two offshore areas in Venezuela.

The two areas, Blanquilla Est and Tortuga, are in the Caribbean Sea off the coast of Venezuela, approximately 130 km (81 mi) north of Puerto La Cruz. Water depths in the approximately 5,000 sq km (1,930 sq mi) covered by the agreement range from 200 to 500 m (656 to 1,640 ft). The companies believe that the two wells previously drilled on the area confirm a high potential for gas and condensate resources.

The development of the two areas will be an integrated business venture consisting of exploration, production, liquefaction, and marketing activities linked to a new LNG train.

The project will consist of two phases. The first phase will cover the exploration and reserve certification processes and will be carried out by a joint venture that includes PDVSA (20%), Eni (20%), and other partners.

The second phase will be carried out by a mixed enterprise that includes PDVSA (60%), Eni (10%) and other partners. Reserves from the development will be primarily dedicated to the LNG facility, in which Eni will also have a 10% ownership.

09/23/2008

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