Caracas, Venezuela (AHN) – In what could be the largest joint investment between Italy and Venezuela, energy giants of both countries have signed an agreement to develop crude oil fields and to construct a refinery.

The $17 billion deal was signed between Italian energy company ENI and Venezuelan state-owned oil company Petroleos de Venezuela (PDVSA).

ENI has pledged to develop a major oil field in the eastern Orinoco river basin while working with the PDVSA. ENI will have 40% stake in the development work in which both the companies are planning to spend $8 billion. The remaining $9 billion will be spent on the refinery construction, which is likely to be completed in 2016.

ENI Chief Executive Paolo Scaroni said that Venezuela would become the second most important country within next four-to-five years for them.

Venezuelan Energy Minister Rafael Ramirez, after signing the deal, said that the Junin 5 oil field would produce 70,000 barrels of oil every day by 2012 and would further rise to a peak of 240,000 barrels during the 25-year deal.

Besides, ENI has also vowed to fund a new electrical plant in Venezuela and also engaged in developing new offshore gas fields in which Spain’s Repsol is the other partner.

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