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Italy's Eni has signed a deal to help state-owned Petroleos de Venezuela (PDV) develop the huge Junin 5 extra-heavy oil field in Venezuela's Orinoco Belt.
The pact signed in Caracas on Tuesday makes Eni the first Western oil firm to sign a heavy oil deal since Venezuela nationalized its oil industry in 2006 -- a move that prompted Exxon Mobil and ConocoPhillips to leave the country.
Eni said commercial production from the giant field, with certified reserves of 35 billion barrels, is set to start in 2013.
The Italian firm said output will start at 75,000 barrels per day but will reach 240,000 b/d, once a new refinery is built in the port town of Jose to process the crude.
PDV will be formally in charge of the project and will have a 60% stake in a special joint-venture company that will be set up for the purpose. Eni will own the remaining 40%.
Eni...