Japan, Venezuela Sign Broad Oil, Gas Cooperation

Source:

"Venezuela also agreed with four Japanese trading houses. . .to begin participating in the development of a gas field for liquefied natural gas."

Japan and Venezuela agreed on Monday on a broad cooperation to develop oil and gas projects in the Latin American nation, deepening bilateral relations to help diversify sources of energy for the resource-poor Asian country.

State-affiliate Japan Oil, Gas and Metals National Corp (JOGMEC), Inpex Corp and Mitsubishi Corp will pursue a joint feasibility study with Venezuela on the Orinoco oil belt in the next two years, Energy Minister Rafael Ramirez said at a signing ceremony in Tokyo.

The oil belt may potentially have reserves of up to 6 billion barrels, and the ability to produce about 200,000 barrels per day, said Ramirez, who is also the head of the state oil company PDVSA [PDVSA.UL].

Venezuela also agreed with four Japanese trading houses, Mitsubishi, Itochu Corp, Mitsui & Co and Marubeni Corp, to begin participating in the development of a gas field for liquefied natural gas, Ramirez said.

If realized, it could allow much of the LNG to be brought over to Japan beyond 2013, he said.

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