OREANDA-NEWS. July 28, 2008. In Moscow Vagit Alekperov, the President of LUKOIL, and Rafael Ramirez Carreno, the President of PDVSA, State Petroleum Company of Venezuela, have signed an Agreement on Joint Study of Junin-3 block in the Orinoco heavy oil belt (Guarico state, Venezuela), reported the press-centre of LUKOIL Overseas.

The Agreement was signed in the presence of the leaders of the Russian Federation and Bolivarian Republic of Venezuela Dmitry Medvedev and Hugo Chavez Frias.

A joint study will be performed to evaluate the project pertaining to production of extra heavy oil, its further refining on the territory of Venezuela and export overseas. Expenses for the study will be shared by the parties on an equal basis. The Agreement will be effective within two years with a possibility of extension. 

The previous agreement on Junin-3 was signed by LUKOIL and PDVSA on October 12, 2005 for the term of three years. Obligations on this agreement, related to quantitative assessment and certification of heavy oil reserves in the area of 678 square kilometers, have been fully discharged. The results of these studies were certified by Ryder Scott, independent engineering company, and officially approved by the Ministry of Energy and Petroleum of Venezuela.

Vagit Alekperov, President of LUKOIL, said: "Signing of the new agreement is an important stage in the development of our co-operation with Venezuela, which has a strategic format for the development of the Company’s international activity".