Venezuela oil firm to invest billions in 2010

October 15, 2009 11:20:13 AM

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Venezuela's Petroleos de Venezuela (PDVSA) will invest more than 16 billion dollars in 2010 in a variety of projects, the state oil company said Wednesday.

The investments will go towards projects including a joint Venezuelan-Russian project to exploit massive oil reserves in the Orinoco basin.

The plans would mark an increase from spending of 15 billion dollars in 2009, PDVSA's vice president in charge of exploration and production, Eulogio Del Pino, said.

Exploration of Junin 6, which could yield up to 450,000 barrels a day by 2012, is among the company's top priorities, according to PDVSA.

Venezuelan President Hugo Chavez said recently the project could require up to 30 billion dollars in investments.

China has already pledged to invest 16 billion dollars in the area over the next three years, and France's Total has expressed interest in investing up to 25 billion dollars in partnership with PDVSA to exploit the Junin 10 block of the Orinoco basin.

In 2007, Latin America's top oil exporter implemented a system of mixed capital investments in the promising Orinoco basin under which Venezuela must have a 60 percent stake.

PDVSA also announced it would issue three billion dollars in bonds to help pay off debts that stood at 7.5 billion dollars at the end of 2008, according to official figures.