Eni Picks Up Tab for PDVSA's Junin 5 Development

- Eni Picks Up Tab for PDVSA's Junin 5 Development

Friday, July 15, 2011
Eni S.p.A.

The Minister of Energy and Petroleum of Venezuela and President of PDVSA, Rafael Ramírez and Eni's CEO Paolo Scaroni, met yesterday in Caracas to discuss the significant joint projects between PDVSA and Eni in Venezuela.

In particular, the primary topic of discussion was the development of the Junín 5 heavy oil block, located in the Faja of Orinoco, which holds 35 billion barrels of certified oil in place and is operated by two mixed enterprises (PetroJun í n for the upstream and PetroBicentenario for the downstream) owned 60% PDVSA, 40% Eni.

The development plan calls for an early production phase of 75,000 barrels of oil per day starting in late 2013, and a full phase of 240,000 barrels of oil per day in 2018, along with the construction of a new refinery on the coast, in Jose.

In yesterday's meeting PDVSA and Eni also discussed options to anticipate the early production start up in late 2012 using synergies with existing PDVSA facilities to transport an initial gross production of 7 to 10 kbopd. PetroJun í n expects to award the main engineering contracts for the EP phase (processing facilities and pipelines) and the drilling contracts in 3Q 2011. It is anticipated that approximately 10 wells will be drilled this year. In addition, by year end the award of the engineering contract for the downstream (refinery) is also planned.

Eni agreed to finance PDVSA's share of development costs for Junín 5's early production phase up to a total of $1.5 billion USD.
As a social project to help the country, Eni will dedicate a tranche of the Junín 5 bonus and make additional financing to PDVSA for a combined total of $500 million USD, dedicated to fund a power station to be built in the Güiria peninsula.

In Venezuela, Eni is co-operator with a 50% stake, in the Cardon IV Operating Company which manages the offshore block where the super-giant Perla gas field is located. Perla has over 16 Tcf of estimated gas in place (2.9 billion barrels of oil equivalent). Cardon IV completed the FEED for the early production phase (300 MMscf/d) and is discussing a gas sales agreement with PDVSA.

Eni is also present in Venezuela through its participation in Petrosucre (PDVSA 74%, Eni 26%), the company which operates the Corocoro oil field.

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Blackford Dolphin Picks Up Additional Brazilian Work

Blackford Dolphin Picks Up Additional Brazilian Work

Tuesday, April 26, 2011

Fred. Olsen Energy ASA

Dolphin Drilling, a subsidiary of Fred. Olsen Energy, has entered into a Letter of Intent for the provision of the semi-submersible Blackford Dolphin for the drilling of one well offshore Brazil. Commencement is scheduled late in the fourth quarter 2011, with an estimated duration of total 135 days of which some 118 days will be in continuation of the existing Reliance contract. Total contract value is approximately USD 47 million. The contract remains subject to final contract agreement, partner and management approval which are anticipated to be closed within end May.

Noreco Picks Up NCS Licenses

Noreco Picks Up NCS Licenses

Friday, April 15, 2011
Norwegian Energy Co. ASA

Norwegian Energy Company (Noreco) has been offered two licenses in the 21st licensing round on the Norwegian continental shelf.

"This license round has opened up for very interesting new opportunities in the Barents Sea and the Norwegian Sea, and has attracted a lot of interest from the industry. We are very pleased to see that Noreco was awarded two of its prioritized targets," said Einar Gjelsvik, CEO in Noreco.

Noreco has been offered a 40 percent interest in license PL606 which is located in the Barents Sea. OMV will be operator for the license.

The company has also been offered a 20 percent interest in license PL599, which is located in a part of the Norwegian Sea where Noreco already has a strong acreage position. This license will be operated by BG Norge.