Russia and Venezuela to invest $ 20 bn in Junin 6 oil field

Venezuela and a consortium of Russian oil companies intend to invest $ 20 bn into the development of the Junin 6 oil deposit in the Orinoco River Basin, the Venezuelan oil and energy minister said.
"We'll invest $ 20 bn in that block for upstream development, perforation and in an upgrader," Rafael Ramirez was saying. Ramirez added that the Russian companies have paid a bonus of $ 1 bn for participation in the development of the deposit that could produce 400,000-450,000 barrels of crude a day.

During the visit by Venezuelan President Hugo Chavez to Moscow, his country's state oil and gas company PdVSA and the Russian consortium, NNK, signed a memorandum of understanding. They also agreed to establish a joint venture for work on the Junin 6 block.
NNK, or the National Oil Consortium, consists of Rosneft, energy giant Gazprom, LUKoil, TNK-BP and Surgutneftegaz. It is to establish a joint venture with PdVSA by the end of 2009. In line with Venezuelan laws, foreign companies can produce oilas part of a joint venture.

Venezuela is one of the largest oil producing countries in the world, with about 87 bn barrels of proven conventional oil reserves as of 2008. In addition, it has a huge non-conventional oil deposits (heavy crude).
Most of these deposits are located in the Orinoco oil belt.