Eni advances Venezuelan heavy oil project, eyes year-end approval

MILAN, Oct 23 (Reuters) - Italian energy group Eni could take a final investment decision by year-end on the first phase of a Venezuelan oil project that it expects will eventually produce up to 1 million barrels per day (bpd), executives said on Friday.

Eni signed an agreement in September with state-owned oil company PDVSA to develop the Junin 5 heavy oil field in Venezuela's Orinoco Belt.

"Things are moving very quickly," Chief Transition and Financial Officer Francesco Gattei told analysts on a call after the group's third-quarter results, adding Eni had already submitted a development plan to authorities in Caracas.

Gattei said Eni could approve the first phase of the project before year-end.

According to Guido Brusco, Eni's chief operating officer for natural resources, production at Junin 5 is expected to increase to 200,000 bpd from around 12,000 bpd currently within 18 to 24 months of the investment decision.

Output could then rise to 400,000 bpd by the end of 2029 before eventually reaching 1 million bpd in 2032-2033, Brusco said.

Eni is also waiting for approval from Venezuelan authorities for a development plan at the Perla gas field, a 50-50 joint venture with Spain's Repsol, before proceeding with an investment decision. 

The first phase of the project would add 90 million standard cubic feet of gas per day to Venezuela's domestic market, while a second phase would support exports through a floating liquefied natural gas facility with annual capacity of about 3.4 million to 3.5 million metric tons, Brusco said.

The Italian group is also working on a multi-billion-dollar project to export gas from Argentina that it will develop with the country's energy company YPF and ADNOC's investment arm XRG.

Eni targets 65% to 70% financing to cover capital expenditures for the Argentina LNG project, Brusco said, adding the company has met "very strong appetite" for financing it.

(Reporting by Francesca Landini;Editing by Elaine Hardcastle)