OREANDA-NEWS. October 8, 2012. State-run oil company Petroleos de Venezuela, S.A. (PDVSA), Russian oil consortium (Rosneft, Lukoil, Gazprom, TNK-BP) and Petrovietnam started on Thursday early production in Junin 6 and 2 blocks at the Orinoco Oil Belt (FPO) through joint ventures Petromiranda and Petromacareo, respectively.

Rafael Ramirez, the People’s Minister for Petroleum and Mining and president of PDVSA, and representatives of Russian oil companies witnessed the extraction of the first sample of crude oil produced at Miranda 1 multiple directional drilling platform (macolla), located north of the Orinoco River in the northeastern Venezuelan state of Anzoategui. Oil production at this cluster is expected to reach 16,000-20,000 barrels per day (tbpd).

“We had said that the first early production at the FPO was going to occur in the last quarter of the year. These are literally the first barrels that have been produced; it is extra heavy crude oil and we are building another multiple directional drilling platform right here. This cluster is going to tap 16 oil wells,” Ramirez said. He described the event as a historic occasion, because it is the first time that PDVSA extracts heavy oil from Venezuelan soil together with the Russian oil consortium.

The minister of Petroleum and Mining said: “The investments made in these projects amount to 19 billion to 20 billion bolivars (4.42 billion dollars to 4.65 billion dollars). They are joint ventures between Venezuela, through PDVSA, and the Russian oil consortium. We appreciate their work and dedication to get this early production.”

“We are fully complying with the proposal made by our President Hugo Chavez to the country: to transform the FPO in the economic engine for our future. We will be able to boost our development in areas such as infrastructure, housing, non-oil and industrial activities,” Ramirez noted.

Minister Ramirez said that PDVSA is also building a 130-km (80 mile) oil pipeline with a 36-inch diameter in order to transport all crude oil production to the upgraders facilities, while the construction of an upgrader in the area is completed.

Meanwhile, Igor Sechin, CEO of Russia’s state-run Rosneft, expressed his appreciation for the Bolivarian government: “I would like to sincerely thank our presidents and Minister Ramirez not only for producing the first barrel of oil but for strengthening our relationship further. Russian and Venezuelan oil companies are able to undertake projects of this magnitude.”

The first shipment of 400 barrels of heavy crude oil was delivered during the event. It was made through a super vacuum truck bound to Petrocedeno, a joint venture, where it will be upgraded.

At the same time that oil was extracted in Miranda 1 multiple directional drilling platform, in the Ho Chi Minh drilling cluster located in Junin 2 Block at the Orinoco Oil Belt, with the participation of representatives from PDVSA and Petromacareo, a Venezuelan-Vietnamese oil and gas joint venture.

Production at this oilfield is expected to reach 200 tbpd for a period of 25 years. Activities such as the development of extra heavy oil exploration, production, upgrading and marketing will also be undertaken in this area.