Conoco Venezuela C.A., a unit of ConocoPhillips (COP)
, and its partners have received approval for Phase I of the development plan for the Corocoro field in Venezuela's Gulf of Paria West area. The approval was granted by the Control Committee, comprised of representatives of the Ministry of Energy and Mines, Petróleos de Venezuela, S.A. (PDVSA) and the partners.
The total investment for the Corocoro Phase I development is estimated at $480 million over the next three years. The development is expected to achieve average annual oil production of 55,000 gross barrels per day, with a gravity of 24.5 degrees API, approximately two and a half years after development begins. Additional phases will be considered based on the success of Phase 1.
ConocoPhillips was awarded the Gulf of Paria West block
under a profit sharing agreement with the Venezuelan state during the first exploration bidding round (Apertura) in 1996. The Corocoro field was discovered in early 1999, and ConocoPhillips and its partners completed the evaluation program last year.
According to the agreement, CVP (a subsidiary of PDVSA) has elected to acquire a 35 percent participating interest in the development. CVP’s election proportionately reduces the partners’ interests. ConocoPhillips will continue to be the operator of Corocoro on behalf of its partners: CVP, Eni and Opic Karimun Corporation.