MONTEVIDEO – Uruguayan state-owned oil company ANCAP has signed an agreement with state-owned oil giant PDVSA to produce oil from a mature field in Venezuela’s Orinoco Belt, media reports said.
ANCAP will have a 40 percent stake in the field, while PDVSA will own a 60 percent interest.
The agreement was signed by ANCAP CEO Jose Coya in Venezuela.
The Orinoco Belt, located in southeastern Venezuela, holds some of the largest proven petroleum reserves in the world.
ANCAP plans to team up with a foreign investor who will receive a 49 percent interest in its stake in the field in exchange for providing the capital needed to fund the project, ANCAP exploration and production chief Hector de Santa Ana said.
The mature fields in the northern Orinoco Belt currently produce between 1,000 barrels per day (bpd) and 2,000 bpd, and the goal is to increase production to 6,000 bpd, the executive said.
ANCAP will be paid a dividend in oil if it boosts production to avoid exchange-rate problems.
Uruguay imports nearly all the petroleum it consumes, with Venezuela being one of its top suppliers.