Orinoco belt

The Orinoco Belt is a territory which occupies the southern strip of the eastern Orinoco River Basin in Venezuela. Its local Spanish name is Faja Petrolífera del Orinoco (Orinoco Petroleum Belt).

The Orinoco Belt is located south of the Guárico, Anzoátegui, Monagas, and Delta Amacuro states, and it follows the line of the river. It is approximately 600 km from east to west, and 70 km from north to south, with an area about 55,314 km².

Oil reserves

The Orinoco Belt consists of large deposits of extra heavy crude (oil sands), known as the Orinoco Oil Sands or the Orinoco Tar Sands. The Orinoco Tar Sands are known to be one of the largest, behind that of the Athabasca Oil Sands in Alberta, Canada. Venezuela's non-conventional oil deposits of about 1200 Goilbbl, found primarily in the Orinoco oil sands, are estimated to approximately equal the world's reserves of conventional oil. Petróleos de Venezuela S.A. has estimated that the producible reserves of the Orinoco Belt are up to 235 Goilbbl which would make it the largest petroleum reserve in the world, before Saudi Arabia.

In 2009, USGS updated this value to 513 Goilbbl of oil which is "technically recoverable (producible using currently available technology and industry practices).". It is currently divided into four exploration and production areas. These are: Boyacá (before Machete), Junín (before Zuata), Ayacucho (before Hamaca), and Carabobo (before Cerro Negro). The current exploration area is about 11,593 km2.

Development

Oil Sowing Plan 2005-2030

Source:The data in this article is taken directly from the official PDVSA web page.

Venezuela power policy guidelines until the year 2030 are drawn up in the "Oil Sowing Plan” ("Plan Siembra Petrolera"), which includes six development projects and consists of two stages: one to be executed in the period 2005-2012, and another, to be developed in the second stage, 2012 and 2030.

For the first period of this Plan, an overall investment of around US $56 billion ^{[citation needed]} has been estimated between 2005 and 2012. 70% of that amount will be financed by Venezuela — state operator — and the rest by the private sector.

Oil Sowing Plan 2005-2012 includes six fundamental axes:

1. Magna Reserve: Destined toward the quantifying and certifying of oil reserves in the Orinoco Oil Belt. In a presentation given by PDVSA (held by Director Ignacio Layrisse) at the VII LAPEC conference in Buenos Aires, March 2001, the proven Venezuelan reserves were given as 76 Goilbbl. Of this amount 52 Goilbbl were heavy or extra heavy oil, including 37 billion reserves of extra heavy in the Orinoco Belt (1 in Machete, 15 in Zuata, 6 in Hamaca and 15 in Cerro Negro). This indicates that Venezuela’s reserves, according to PDVSA, in 2001 were 39 Goilbbl excluding the Orinoco Belt.
2. Orinoco Project: In charge of developing the Orinoco Belt. Twenty-seven blocks have been selected for development under this project with the cooperation of selected companies. Because of the strategic location of this hydrocarbon reservoir, it is considered of vital importance in reducing levels of overcrowding in some parts of the country and providing local employment. Services and housing will be developed to guarantee adequate oil exploitation.
3. Delta-Caribbean Project: Gas will be incorporated to the country energy supply. This project pursues offshore gas development in the Deltana Platform off the coast of eastern Venezuela. Further developments are located in the Paraguaná Peninsula, to the north-west of the country.
4. Refinement: To increase refinement capacity in Venezuela is one of PDVSA’s strategic goals. Oil Sowing Plan undertakes the creation of new refineries: Cabruta (with capacity for 400,000 extra-heavy crude barrels per day), Batalla de Santa Ines (50000 oilbbl) and Caripito (50000 oilbbl/d}} destined to asphalt production). With these three new refineries and the improvement of the existing ones, PDVSA’s processing capacity on Venezuelan soil will be increased to 700000 oilbbl/d}}.
5. Infrastructure: More filling centers and pipelines will be set up to guarantee fuel supplies to the whole nation. The agreement for the construction of the Transguajiro gas pipeline between Venezuela and Colombia has been signed in 2005.
6. Integration: According to Hugo Chavez's aims, oil is to be used as a geopolitical resource helping the integration of the peoples of Latin America and the Caribbean. Venezuela thus created Petrocaribe and signed the Petrosur agreement. A refinery was also to be built close to Petrobras in Brazil.

Production blocks

Production blocks will be developed by PDVSA in cooperation with foreign partners. In all partnership PDVSA owns 60%.

Junin

Junin block 2 is under development in cooperation with Petrovietnam. SNC-Lavalin was awarded the engineering contract on March 10, 2010. It is expected to produce 200 koilbbl/d by 2011. The development will include also a heavy crude upgrader; however, its commissioning date is not specified. Junin block 4 is developed in cooperation with CNPC (40%). It is expected to produce 400 koilbbl/d; however, the commissioning date is not announced. Junin block 5 is developed in cooperation with Eni (40%). It is expected to produce 75 koilbbl/d by 2013 with late production of 240 koilbbl/d. The development will include an oil refinery for production of motor fuels. Junin block 6 is developed in cooperation with a consortium of Russian oil companies, including Rosneft, Gazprom Neft, Lukoil, TNK-BP and Surgutneftegaz. It is expected to produce 450 koilbbl/d; however, the commissioning date is not announced.

There is no foreign partner yet for Junin 1, 10, and 11 blocks — all with expected production capacity of 200 koilbbl/d.

Carabobo

Carabobo 1 is developed in cooperation with Repsol YPF (11%), Petronas (11%), ONGC (11%), Indian Oil Corporation (3.5%), and Oil India (3.5%). It consists of Carabobo block 1 North and block 1 Central. The expected production output will be 400 koilbbl/d by 2013. The upgrader is expected to be ready by 2017.

Carabobo 3 is developed in cooperation with Chevron Corporation (34%), Suelopetrol (1%) pct, and Mitsubishi Corporation and Inpex (5%). It consists of Carabobo block 2 South, block 3, and block 5. The expected production output will be 400 koilbbl/d by 2013. The upgrader is expected to be ready by 2017.

Carabobo 2 will be developed in cooperation with Rosneft and Corporation Venezolana del Petroleo (CVP) - a subsidiary of Venezuela’s state oil and gas company PDVSA. The agreement, signed by Rosneft CEO Igor Sechin and Venezuelan Oil Minister, PDVSA chief Rafael Ramirez in the presence of President Hugo Chavez, establishes a joint venture to develop the Carabobo 2 bloc in the southern Orinoco extra-heavy crude belt in Venezuela.

The signed memorandum established Rosneft's share will be 40 percent. Rosneft will pay CVP a bonus of $1.1 billion, paid out in two installments: $440 million within ten days after the establishment of the joint venture, and the rest after Rosneft makes the final decision on the project. In addition, Rosneft will issue a $1.5 billion loan to CVP for five years. The loan will be provided in tranches of not more than $300 million annually at the annual interest rate of LIBOR+5.5 percent. To develop the Carabobo 2 bloc Rosneft will invest a total of $16 billion, according to CEO Igor Sechin. The Carabobo 2 bloc’s reserves total 6.5 billion metric tons of crude. Commercial oil production at the bloc is expected to hit 400,000 barrels per day. Rosneft, along with several Russian oil companies (Gazprom Neft, Lukoil, TNK-BP and Surgutneftegaz), have formed a consortium to develop the Junin bloc 6 of the Orinoco belt in Venezuela.

External links

• Faja Petrolífera del Orinoco.
• Department of Earth Science, Rice University, The Ornico Heavy Oil Belt In Venezuela (or Heavy Oil to the Rescue?).