Italian energy company Eni has signed a $17 billion (£11 billion) deal with Venezuela to develop crude oil fields and build a refinery.
Working with the state-owned oil company Petroleos de Venezuela (PDVSA), Eni will develop a major oil field in the eastern Orinoco river basin.
The companies plan to achieve an early production phase of 75,000 barrels per day with first oil expected by 2013, and a long term production plateau of 240,000 barrels per day to be reached in 2018. Approximately 1,500 horizontal shallow wells will be needed for the full field development.
The two companies have committed to spend $8 billion developing the oil field, with Eni taking a 40 percent minority stake. They will spend a further $9 billion on the refinery, which is to be ready by 2016.
The refinery will be built in the Jose Industrial Complex, which provides access to export markets and ensures synergies with existing industrial services. The refinery will process 350,000 barrels per day into diesel for the European market.
"Within four, five years, Venezuela is going to be the second most important country for our company," said Eni chief executive Paolo Scaroni.
"It is without doubt the biggest joint investment between Venezuela and Italy," said Venezuelan energy minister Rafael Ramirez.
ENI has also committed to finance a new electrical plant in the country, and is also involved in developing an enormous new offshore gas fields along with Repsol of Spain.
