The first agreement is a memorandum of understanding to create a new company (mixed enterprise) to develop and produce Perla’s condensate reserves. The new company will be jointly run by CVP (PDVSA’s affiliate) with a 60% participation, Eni with 20%, and Repsol with 20%. Currently the condensate reserves are the property of the Republic of Venezuela.
The second agreement establishes the key elements for up to $1 billion investment structure to finance PDVSA’s (CVP’s) share in the Perla development. Eni and Repsol will contribute with up to $500 million each.
Both agreements are subject to final contracts being signed and approved by local authorities. The Perla field, located in the Cardón IV block in the Gulf of Venezuela, was discovered in 2009. The current estimate of gas in place is 3.1 Bboe.
The Cardón IV block is licensed and operated by the joint operating company Cardón IV SA, owned by Eni (50%) and Repsol (50%). PDVSA exercised its 35% back-in right, and, after the imminent signature of a sale and purchase agreement, it will get its ownership stake in the company, which will be jointly operated. Eni and Repsol will each keep a 32.5% interest.
Perla production startup is expected by the end of 2014; production will reach the following peaks: Phase I at 300 MMcf/d, Phase II at 800 MMcf/d and Phase III at 1,200 MMcf/d.